You are an employee of university consultants, ltd., and have been given the following assignment. you are to present an investment analysis of a new small residential income producing property for sale to a potential investor. the asking price for the property is $1,250,000; rents are estimated at $200,000 during the first year and are expected to grow at 3 percent per year thereafter. vacancies and collection losses are expected to be 10 percent of rents. operating expenses will be 35 percent of effective gross income. a 70 percent loan can be obtained at 11 percent interest for 30 years. the property is expected to appreciate in value at 3 percent per year and is expected to be owned for five years and then sold.