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In this question ch13 p1 of real estate finance& investment (it's a textbook problem and I have solution book) However, I don't understand the thinking
In this question ch13 p1 of real estate finance& investment (it's a textbook problem and I have solution book)
However, I don't understand the thinking and calculating process.
Investment A requires an outlay of $110,000 and Investment B requires an outlay of $120,000.
a. What is the BTIRR on each investment?
b. If the BTIRR were partitioned based on BTCF and BTCFs what proportions of the BTIRR would be represented by each?
c. What do these proportions mean?
| A | OUTLAY | 110000 | B | OUTLAY | 120000 | |
| BTCF | BTCF | |||||
| 5000 | 2000 | |||||
| 10000 | 4000 | |||||
| 12000 | 1000 | |||||
| 15000 | 5000 | |||||
| sale)120000 | (sale)180000 | |||||
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