# You are considering the purchase of an apartment complex. 0 Purchase price: \$775,000 0 BTCF: NOI \$103,085 \$108,361 \$113,875 \$119,636 \$125,651 0…

I do not want the answer, please just guide and assist me on how to do part B of this question.

b) You take a \$620,000 mortgage. Your annual debt payment is \$54,593. The outstanding loan balance at the end of year 4 is \$596,558. Calculate the NPV of this project

You are considering the purchase of an apartment complex. 0 Purchase price: \$775,0000 BTCF:NOI \$103,085\$108,361 \$113,875\$119,636\$125,651 0 Holding period is four years 0 Cap rate is expected to be 7% in year 4 0 Selling expenses will be 5% of the sale price 0 The 4-year Treasury bill rate is 3% and your risk premium for this project is 8% a) Calculate the NPV of this project assuming that you do not take any mortgagesb) You take a \$620,000 mortgage. Your annual debt payment is \$54,593. The outstanding loanbalance at the end of year 4 is \$596,558. Calculate the NPV of this project.