Question: Please include all steps on how to solve this problem A Final HRTM 421 Homework Assignment: Complete the following problems using the information given below:
Please include all steps on how to solve this problem
A Final HRTM 421 Homework Assignment: Complete the following problems using the information given below: Total Project Cost: $30,000,000 Lender Standards: o Interest Rate: 7.5% o Amortization Rate: 20 Yrs. Debt service coverage ratio: 1.5 o Debt-to-cost ratio 60% Projected annual cash flow of project: $2,750,000 Investors' Hurdle Rate: 15% Tax Rate: 35% Cap Rate 10% Sale in Year 10 on flow you COY 10 noun 1. Calculate the maximum amount of money you can borrow based on the lenders debt to cost m ratio. 2. Calculate the amount of annual debt service based on the loan terms offered. 3. Confirm that the debt service coverage ratio required by the lender is met. anchen you may not 4. Calculate the amount of equity required. 5. Calculate the weighted average cost of capital. Suara Savines A r e 6. Calculate the net present value of the project assuming a sale in year 10. 7. Calculate the internal rate of return. A Final HRTM 421 Homework Assignment: Complete the following problems using the information given below: Total Project Cost: $30,000,000 Lender Standards: o Interest Rate: 7.5% o Amortization Rate: 20 Yrs. Debt service coverage ratio: 1.5 o Debt-to-cost ratio 60% Projected annual cash flow of project: $2,750,000 Investors' Hurdle Rate: 15% Tax Rate: 35% Cap Rate 10% Sale in Year 10 on flow you COY 10 noun 1. Calculate the maximum amount of money you can borrow based on the lenders debt to cost m ratio. 2. Calculate the amount of annual debt service based on the loan terms offered. 3. Confirm that the debt service coverage ratio required by the lender is met. anchen you may not 4. Calculate the amount of equity required. 5. Calculate the weighted average cost of capital. Suara Savines A r e 6. Calculate the net present value of the project assuming a sale in year 10. 7. Calculate the internal rate of return
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