Use the assumptions to answer the question below:

PGI: 12,000,000

Vacancy: 5% of PGI

OpEx: 25% of EGI

Cap Rate: 7.5%

LTV: 70%

Mortgage Constant: 6.6264%

Show and explain your work:

1.) Calcualte NOI

2.) Calculate value using the direct cap method. This is the price you will pay for the property

3.) Calculate the loan amount

4.) Calculate the annual debt service

5.) Calculate the debt service coverage ratio (DSCR)

6.) Calculate the debt yield ratio (DYR)