N3 Gina wants to buy an office building with an asking price of $3million. She estimates the annual net operating income for this building to be equal to $165,000. She gets from ABC bank a 20-year IO FRM with an annual rate of interest equal to 7.35% with annual compounding and annual payments in order to buy the building. ABC bank has a minimum DCR ratio equal to 1.25. and a maximum LTV requirement equal to 70%. What is the largest mortgage that ABC bank could give to Gina based on both the DCR and LTV requirements? could you use BA II Plus texas instruments calculator
N3 Gina wants to buy an office building with an asking price of $3million. She estimates the annual net operating income for this building to be equal to $165,000. She gets from ABC bank a 20-year IO FRM with an annual rate of interest equal to 7.35% with annual compounding and annual payments in order to buy the building. ABC bank has a minimum DCR ratio equal to 1.25. and a maximum LTV requirement equal to 70%. What is the largest mortgage that ABC bank could give to Gina based on both the DCR and LTV requirements? could you use BA II Plus texas instruments calculator
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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Gina wants to buy an office building with an asking price of $3million. She estimates the annual net operating income for this building to be equal to $165,000. She gets from ABC bank a 20-year IO FRM with an annual rate of interest equal to 7.35% with annual compounding and annual payments in order to buy the building. ABC bank has a minimum DCR ratio equal to 1.25. and a maximum LTV requirement equal to 70%. What is the largest mortgage that ABC bank could give to Gina based on both the DCR and LTV requirements?
could you use BA II Plus texas instruments calculator
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