Question
Need help finding the the unlevered BTIRR and ATIRR of a problem with a financial calculator not excel. The investor is buying a new apartment
Need help finding the the unlevered BTIRR and ATIRR of a problem with a financial calculator not excel.
The investor is buying a new apartment property for $1.5 million. She can get an 80% loan for 30 years at 10%. NOI is expected to be $500,000 in the first year and grow at a rate of 2% for the next three years along with the underlying value of the building. The building and improvements represent 80% of value and are depreciated over a 27.5 useful life for an annual depreciation allowance of $43,636. The project is expected to sell after three years, and the investors are subject to a 30% tax rate. Create pro forma cash flow statements to solve the following problems.
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