Question 9a: How much equity can GNOSH raise from Central Capital?

(Answers are rounded to the closest thousand dollars)

A.$1,182

B.$1,518

C.$1,767

D.$1,323

Question 9b: What is the present value of Central Capital's offer assuming a 7 percent (7%) discount rate?

(Answers are rounded to the closest thousand dollars)

A.$1,523

B.$1,468

C.$1,812

D.$1,325

GNOSH starts looking for equity investors who are interested in tax credits. Central Capital Corporation, a prominent syndicator, is willing to invest $.80 for every $1.00 of LIHTCs and $.85 for every $1.00 of RTCs. Central Capital will provide half of its investment amount at the start of construction and half at completion (about one year later). a) How much equity can GNOSH raise from Central Capital? (2 points) b) What is the present value of Central Capital's offer assuming a 7 percent discount rate? (3 points) GNOSH starts looking for equity investors who are interested in tax credits. Central Capital Corporation, a prominent syndicator, is willing to invest $.80 for every $1.00 of LIHTCs and $.85 for every $1.00 of RTCs. Central Capital will provide half of its investment amount at the start of construction and half at completion (about one year later). a) How much equity can GNOSH raise from Central Capital? (2 points) b) What is the present value of Central Capital's offer assuming a 7 percent discount rate? (3 points)