Brueggeman's Chapter 11(Q2)Year200,000Vacancy & Collection Loss 20,000123456.PGI206,000 212,180 218,545 225,102 231,855EGI180,000Expenses63,000NOI117,000Debt Service99,994ВТСР17,00620,51624,13127,85531,69135,641Cash flow from sale in year5Sales Price1,449,093Sales costsMortgage BalanceBefore-tax cash flow850,191598,902What is the first-year debt coverage ratio? (1.17)b. What is the terminal cap rate? (9.36%)What is the investors' expected BTIRR? (15.04%)d. What is the NPV using a 14% discount rate? ($15,994) Whatdoes this mean?а.с.What is the profitability index using a 14% discount rate?(1.04) What does this mean?е.

Since it is not specifically mentioned about the questions to be answered, so the first three parts…

Answered: What is the first-year debt coverage…

What is the first-year debt coverage ratio? (1.17) b. What is the terminal cap rate? (9.36%) What is the investors’ expected BTIRR? (15.04%) а. с.

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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Question

Brueggeman's Chapter 11
(Q2)
Year
200,000
Vacancy & Collection Loss 20,000
1
2
3
4
5
6.
PGI
206,000 212,180 218,545 225,102 231,855
EGI
180,000
Expenses
63,000
NOI
117,000
Debt Service
99,994
ВТСР
17,006
20,516
24,131
27,855
31,691
35,641
Cash flow from sale in year5
Sales Price
1,449,093
Sales costs
Mortgage Balance
Before-tax cash flow
850,191
598,902
What is the first-year debt coverage ratio? (1.17)
b. What is the terminal cap rate? (9.36%)
What is the investors' expected BTIRR? (15.04%)
d. What is the NPV using a 14% discount rate? ($15,994) What
does this mean?
а.
с.
What is the profitability index using a 14% discount rate?
(1.04) What does this mean?
е.

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