Given the following: Net Operating Income $900,000 Cost of Sale (Broker + Any)...

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Accounting

Given the following:

Net Operating Income $900,000

Cost of Sale (Broker + Any) 6%

Current Loan Balance $2,500,000

Loan to Value Ratio 75%

Capitalization Rate 10%

What is the cash available for distribution to the equity partners under each of the following scenarios?

a) The property is sold.

b) The property is refinanced.

If possible, please use a financial calculator and show me how to solve as I need to learn this concept for this class.

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