Given the following information, please calculate the capita…

Given the following information, please calculate the capitalization rate for the following apartment complex. Please show all of your work, including any equations you use. Please also write an explanation as to how to interpret the capitalization rate. Number of apartments: 15Market Rent (per month): $1,000Vacancy and Collection Loss: 10% of potential gross incomeOperating Expenses: 5% of effective gross incomeCapital Expenditures: 10% of effective gross incomeAcquisition Price: $1,710,000

Use the following information for the problems/questions bel…

Use the following information for the problems/questions below. Purchase price: $1,200,000; mortgage loan amount: $900,000; no up-front financing cost; expected (“terminal”) cap rate when property is sold at the end of 5 years: 8.0%; loan balance at the end of 5 years: $900,000 (it is an interest-only loan); investor’s required levered IRR/return (i.e., discount rate): 12%. Assume no selling costs when the property is sold at the end of 5 years.   1 2 3 4 5 6 NOI $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 Annual debt service $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 A. 2 points. What are the expected before-tax cash flows (BTCFs) in years 1-5? B. 2 points. What is the expected sale price at the end of year 5? C. 2 points. What is the expected before-tax equity reversion (i.e., the BTER or cash flow from the sale of the property) from the sale of the property at the end of year 5? D. 2 points. What is the Equity Dividend Rate (i.e., Cash-on-Cash Return) for the first year of rental operations? E. 2 points. What is the Debt Coverage Ratio in the first year? F. 2 points. What is the levered Net Present Value of the investment assuming a five-year holding period? G. 2 points. What is the levered IRR for a five-year holding period?