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An investment has an NOI of $40,000. There is market rate mortgage financing available for 75% of the value at 7.5% interest per year
An investment has an NOI of $40,000. There is market rate mortgage financing available for 75% of the value at 7.5% interest per year with monthly payments, an amortization over 20 years, and an equity dividend rate (RE) of 9.5%. What is the value rounded to the nearest $100,000? Use the band-of- investment technique.
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Accounting Information Systems
Authors: George H. Bodnar, William S. Hopwood
11th Edition
0132871939, 978-0132871938
