Question
Assume that we have a commercial real estate property whose projected 5-year cash flows are the following: Year -1: -$50 Year 0: -$100 Year 1:
Assume that we have a commercial real estate property whose projected 5-year cash flows are the following:
Year -1: -$50
Year 0: -$100
Year 1: $20
Year 2: $25
Year 3: $30
Year 4: $35
Year 5: $140
Assuming a discount rate of 2%. Assume further that the first years annual debt service is $5. What is the cash-on-cash return?
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
