A commercial property has PGI of $5 million, expenses of 40% of EGI and the vacancy is underwritten at 10%. What values would the following parameters suggest for the property. 70 % LTV with a rate of 4.5% and 360 month amortization schedule. Given a property value of $45 million, calculate PGIM, EGIM, Cap Rate, Cash on Cash return and DSCR.

A commercial property has PGI of $5 million, expenses of 40% of EGI and the vacancy is underwritten at 10%. What values would the following parameters suggest for the property. 70 % LTV with a rate of 4.5% and 360 month amortization schedule. Given a property value of $45 million, calculate PGIM, EGIM, Cap Rate, Cash on Cash return and DSCR.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...

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