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In the table below, you are given the purchase price, the loan amount and the implied downpayment paid by the real estate investor in Year
In the table below, you are given the purchase price, the loan amount and the implied downpayment paid by the real estate investor in Year 0. You are also given before-tax cash flows, tax amounts, and after-tax cash flows for the next few years. The building will be sold at the end of Year 4.
Answer the following:
The Before-Tax IRR equals
The After-Tax IRR equals
he effective tax rate equals
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