Question: Sam is purchasing a retail center for $14 million. Expected first-year net operating income for this center is $1.25 million. Butcher's Financial will provide 25-year,

Sam is purchasing a retail center for $14 million. Expected first-year

Sam is purchasing a retail center for $14 million. Expected first-year net operating income for this center is $1.25 million. Butcher's Financial will provide 25-year, 8.75 percent fixed rate financing with monthly payments, a maximum loan-to value ratio of 80 percent, and a minimum debt-coverage ratio of 1.30. Based on these terms, what is the maximum loan amount Sam can expect

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