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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:
- Amount financed (round to nearest dollar)
- Amount of equity (round to nearest dollar)
- Net Income Return on Investment (round to nearest 10th of a percent)
- Cash Return on Investment (round to nearest 10th of a percent)
- Total Return on Investment (round to nearest 10th of a percent)
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