Question
A corporation is considering the purchase of an interest in real estate syndication at a price of $95,000. In return, the syndication promises to pay
A corporation is considering the purchase of an interest in real estate syndication at a price of $95,000. In return, the syndication promises to pay $1,400 at the end of each month for the next 25 years (300 months).
Required:
a. If the interest in a real estate syndication is purchased, what is the expected internal rate of return, compounded monthly?
Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
b. How much total cash would be received on the investment?
Note: Round your final answer to the nearest whole dollar amount.
c1. How much is profit?
Note: Round your final answer to the nearest whole dollar amount.
c2. How much is return of capital?
Note: Round your final answer to the nearest whole dollar amount.
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