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Click on TWO that are FALSE Do not try to click on all! Negative points will be given for any incorrectly clicked answers. You should
Click on TWO that are FALSE Do not try to click on all! Negative points will be given for any incorrectly clicked answers. You should sell a real estate property if the after-tax IRR over the next several years is lower than the after-tax IRR over the past years since the property's purchase. | All else held constant, when the borrowing rate drops, it makes sense to refinance the loan. That's because the after-tax IRR on the property investment over the remaining years of its holding period will increase. The higher the downpayment rate, the higher the variability of after-tax IRRs on a real estate investment, given several possible future scenarios for the cash flows. The sensitivity analysis and the IRR partitioning are both able to test the responsiveness of the annual return on a real estate investment to the future reversion value of the property
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