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1 pts You are considering the purchase of an apartment complex. The following assumptions are made The purchase price is $1,000,000. Potential gross income (PGI)

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1 pts You are considering the purchase of an apartment complex. The following assumptions are made The purchase price is $1,000,000. Potential gross income (PGI) for the first year of operations is projected to be $120,000. PGI is expected to increase at 4 percent per year. No vacancies are expected. Operating expenses are estimated at 40 percent of effective grows income ore capital expenditures The apartment complex will be sold for $1,080,000 at the end of the 4th year no Selling expenses The appropriate unlevered rate of return to discount projected Nols and the projected NSP is 12 percent. Holding period is 4 years. The required levered rate of return is 15 percent. 65 percent of the acquisition price can be borrowed with a 30-year, monthly payment mortgage. The annual interest rate on the mortgage will be 6.0 percent. No Financing costs. The levered IRR of this investment is Browser Guard MacBook Air 3 5 6 1 pts You are considering the purchase of an apartment complex. The following assumptions are made The purchase price is $1,000,000. Potential gross income (PGI) for the first year of operations is projected to be $120,000. PGI is expected to increase at 4 percent per year. No vacancies are expected. Operating expenses are estimated at 40 percent of effective grows income ore capital expenditures The apartment complex will be sold for $1,080,000 at the end of the 4th year no Selling expenses The appropriate unlevered rate of return to discount projected Nols and the projected NSP is 12 percent. Holding period is 4 years. The required levered rate of return is 15 percent. 65 percent of the acquisition price can be borrowed with a 30-year, monthly payment mortgage. The annual interest rate on the mortgage will be 6.0 percent. No Financing costs. The levered IRR of this investment is Browser Guard MacBook Air 3 5 6

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