Mark $0\mathrm{.}00$ out of $1\mathrm{.}00$

You are considering investing in a hotel in San Francisco for $5$ years. The local market is stable. See the table below for its estimated cash

flows. Currently, the hotel is worth $${15}^{\text{'}}{500}^{\text{'}}000($purchase price $=$ market value$)$ and its PBTCF will grow by $4\%$ per year. You decided to

take out a $5-$year interest$-$only loan of $${77}^{\text{'}}750\text{'}000($LTV of $50\%)$ at an annual interest rate of $5,5\%.$ Calculate the leveraged Modified

Internal Rate of Return $($MIRR$,$ before$-$tax$)$ for an equity investor, assuming the reinvestment rate is the expected return on equity. Ignore

transaction costs. $($Hint: Calculate the going$-$in cap rate using the cash flow and the property's current market value. Use the PBTCF

growth rate in estimating the property discount rate $($Rp$)).$

a$.12,05\%$

b$.12,09\%$

c$.22,59\%$

d$.16,24\%$

Your answer is incorrect.

The correct answer is:

$12,09\%$