Question
A property is sold for $240,000. Typical financing terms are an 85% loan with an 8% interest rate over 15 years with monthly payments. If
A property is sold for $240,000. Typical financing terms are an 85% loan with an 8% interest rate over 15 years with monthly payments. If the annual before-tax cash flow in year 1 is $2,000, what is the overall capitalization rate?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
