3 5.26 points c. Assuming conditions in part (a), suppose that mortgage interest rates suddenly increase from 4.5 percent to 6.5 percent. NOI and value will now increase at a rate of 5 percent. c-1. If the desired DCR is 1.20, will the lender be as willing to make a conventional loan now? c-2. Support your answer with a cash flow statement. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B Required C1 Required C2 eBook Support your answer with a cash flow statement for a five-year period. (Do not round intermediate calculations. Round "DCR" to 2 decimal places.) Print NOI Debt service References BTCF DCR Cash flow from sale in year 5 Sales price Sales costs Mortgage balance Before-tax cash flow Year 1 Year 2 Year 3 Year 4 Year 5 < Required A1 Required A3 > neck my WORK
3 5.26 points c. Assuming conditions in part (a), suppose that mortgage interest rates suddenly increase from 4.5 percent to 6.5 percent. NOI and value will now increase at a rate of 5 percent. c-1. If the desired DCR is 1.20, will the lender be as willing to make a conventional loan now? c-2. Support your answer with a cash flow statement. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B Required C1 Required C2 eBook Support your answer with a cash flow statement for a five-year period. (Do not round intermediate calculations. Round "DCR" to 2 decimal places.) Print NOI Debt service References BTCF DCR Cash flow from sale in year 5 Sales price Sales costs Mortgage balance Before-tax cash flow Year 1 Year 2 Year 3 Year 4 Year 5 < Required A1 Required A3 > neck my WORK
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:3
5.26
points
c. Assuming conditions in part (a), suppose that mortgage interest rates suddenly increase from 4.5 percent to 6.5 percent. NOI and
value will now increase at a rate of 5 percent.
c-1. If the desired DCR is 1.20, will the lender be as willing to make a conventional loan now?
c-2. Support your answer with a cash flow statement.
Complete this question by entering your answers in the tabs below.
Required A1 Required A2 Required A3 Required B Required C1 Required C2
eBook
Support your answer with a cash flow statement for a five-year period. (Do not round intermediate calculations. Round "DCR"
to 2 decimal places.)
Print
NOI
Debt service
References
BTCF
DCR
Cash flow from sale in year 5
Sales price
Sales costs
Mortgage balance
Before-tax cash flow
Year 1
Year 2
Year 3
Year 4
Year 5
< Required A1
Required A3 >
neck my WORK
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