Use Excel to create all solutions and submit an excel document for final project submission. Use the mathematical functions within excel to make all calculations. Partial credit is only possible if functions/equations are used in all calculable cells.
Drexel bought an office building for $6,500,000 5 years ago with the purpose of renting as a residential area. The assumptions are:
- First year potential gross income of $1,200,000 with a 3.2% annual growth rate
- Vacancy & collection losses equal to 12% of PGI
- Operating expenses:
1. First year insurance of $145,000 with 2.5% annual growth rate
2. First year Utilities of $137,000 with a 2% annual growth rate
3. First year Maintenance Expense of $75,000 with a 1.5% annual grwoth rate
- capital expenditures = 4% of EGI with a 5% annual escalations
- 70% LTV at 6%
- Mortgage will be amortized over 25 years
-Total up - front dinancinf costs:
1. 2 points of the loan amount
2. $1000 appraisal fee

Question: Build a 25 year amortization table