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Initial investment = $1,300,000 Yr 1 : 140,000 Yr 2: 150,000 Yr 3: 155,000 Yr 4: 175,000 Yr 5: 190,000 Sale of property occurs at
Initial investment = $1,300,000
Yr 1 : 140,000
Yr 2: 150,000
Yr 3: 155,000
Yr 4: 175,000
Yr 5: 190,000
Sale of property occurs at the end of Yr 5 for a price of $1,750,000
For Question 25 use the facts above, and assume that there is 65% debt financing used for the same investment. Interest is 6.00% (monthly pymts) over 240 months.
25) Cash Flow after debt service in year 2 is:
a. $77,354 b. $88,760 c. $71,765.76 d. $93,240
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