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An investor would like to purchase a new apartment property for $ 2 million. However, she faces the decision of whether to use 7 0
An investor would like to purchase a new apartment property for $ million. However, she
faces the decision of whether to use percent or percent financing. The percent loan can
be obtained at percent interest for years. The percent loan can be obtained at percent
interest for years.
NOI is expected to be $ per year and increase at annually, the same rate at which the
property is expected to increase in value. The building and improvements represent of
value and will be depreciated over years. The project is expected to be sold after five
years. Assume a tax bracket for all income and capital gains taxes.
What would the BTIRR be for the loan in decimals, rounded to three digits
What would the BTIRR be for the loan in decimals, rounded to three digits
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