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Consider the following Scenario A: Purchase Price: $530,000 Amount of funds borrowed: 75% Net income before taxes: $5,602 Remaining after tax cash flow from operations:

Consider the following Scenario A:

  • Purchase Price: $530,000
  • Amount of funds borrowed: 75%
  • Net income before taxes: $5,602
  • Remaining after tax cash flow from operations: $28,894
  • Total Return: $32,559

Use the formula sheet provided under the "Contents" organizer (on the Home Page) and calculate:

  1. Amount financed (round to nearest dollar)
  2. Amount of equity (round to nearest dollar)
  3. Net Income Return on Investment (round to nearest 10th of a percent)
  4. Cash Return on Investment (round to nearest 10th of a percent)
  5. Total Return on Investment (round to nearest 10th of a percent)

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