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Consider the information in the table below. What is the marginal rate of return for keeping the property one additional year? If sold today If

Consider the information in the table below. What is the marginal rate of return for keeping the property one additional year?

If sold today If sold next year
Sale price $ 2,500,000 $ 2,650,000
Mortgage balance 1,000,000 900,000
Capital gain tax 112,500 135,000
Cash flow $ 1,387,000 $ 1,615,000
NOI over next year $ 50,000

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