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Given the following information regarding an income producing property, determine the NPV and the IRR using levered cash flows in your analysis: Acquisition price: $2,295,000;
Given the following information regarding an income producing property, determine the NPV and the IRR using levered cash flows in your analysis: Acquisition price: $2,295,000; Expected NOI for each of the next eight years: $253,000; expected holding period: seven years; Expected going-out cap rate: 10% required yield on levered cash flows: 18%; Mortgage terms: 70% LTV @6%, 30 years Upfront financing cost: 2.5% of the loan amount expected cost of sale: 5% of the expected sale price. Show your work.
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