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If an investor invested $75,000 for the down payment on the purchase of a $300,000 commercial property and financed $225,000 at a rate of 5%
If an investor invested $75,000 for the down payment on the purchase of a $300,000 commercial property and financed $225,000 at a rate of 5% for 15 years, what is the approximate rate of return on this investment if the annual after tax cash inflows are expected average $15,000 a year for the next 10 years with an expected resale value of $400,000 resulting resulting in an after tax cash flow from the sale of $175,000.
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