Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A corporation is considering the purchase of an interest in a real estate syndication at a price of $85,000. In return, the syndication promises to
A corporation is considering the purchase of an interest in a real estate syndication at a price of $85,000. In return, the syndication promises to pay $1,200 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. a. Expected intemal rate of return _- b. Total cash receivable _- c2. Return of capital _
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started