Use the below information to complete the operations and reversion proformas, then answer the following 5 questions Purchase price $400,000 LTV 70% Term & Am 20 years Interest rate 4.00% Closing costs $6,000 Holding period 4 years Marginal tax rate 30% (aka ordinary inc tax) Selling expenses (broker) $15,000 Taxes due on sale $100,000 Exit cap rate 10% Discount rate (before tax) 15% Operations YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NOI $ 32,000 $ 40,000 $ 45,000 $ 50,000 $ 60,000 CAPEX $ (5,000) $ (7,000) $ (8,000) $ 0 PBTCF $ 27,000 $ 33,000 $ 37,000 $ 50,000 Income taxes (operations) $ (5,000) $ (5,000) $ (5,000) $ (5,000)

Based on the OMB and futures sales price at the end of your holding period, what is your loan to value ratio at the time of your exit? In other words, when you sell this property, what is your the loan to value at that time (rounded to the nearest %)?

Group of answer choices

None of these are correct

40%

50%

48%

56%