Question 10a: How much equity can GNOSH raise from Worldwide Investors?

(Answers are rounded to the closest thousand dollars)

A.$1,667

B.$1,511

C.$1,612

D.$1,744

Question 10b: What is the present value of Worldwide's offer assuming a 7 percent (7%) discount rate?

(Answers are rounded to the closest thousand dollars)

A.$1,509

B.$1,461

C.$1,266

D.$1,391

Another syndicator, Worldwide Investors, offers to invest $.85 for every $1.00 of LIHTCs and $.90 for every $1.00 of RTCs. Worldwide, however, wants to pay in its equity over several years. It will invest 25 percent of its investment at the start of construction, 25% at completion (about one year later) and 25 percent each year for the next two years. (10 points) a) How much equity can GNOSH raise from Worldwide Investors? b) What is the present value of Worldwide's offer assuming a 7 percent discount rate? Another syndicator, Worldwide Investors, offers to invest $.85 for every $1.00 of LIHTCs and $.90 for every $1.00 of RTCs. Worldwide, however, wants to pay in its equity over several years. It will invest 25 percent of its investment at the start of construction, 25% at completion (about one year later) and 25 percent each year for the next two years. (10 points) a) How much equity can GNOSH raise from Worldwide Investors? b) What is the present value of Worldwide's offer assuming a 7 percent discount rate