Question
ONLY FIND THE AFTERTAX IRR* Given the following information, 1 . Assuming a sales price of $1,10 0,000. Finally, calculate the after tax IRR for
ONLY FIND THE AFTERTAX IRR*
Given the following information, 1. Assuming a sales price of $1,100,000.
Finally, calculate the after tax IRR for the investment.
Purchase Price: $900,000
Loan: $750,000, 5%, 25 years (annual payments)
Year 1 NOI: $100,000
Year 2 ATCF: $33,000
Year 3 ATCF: $34,000
Use an 85/15 ratio for depreciation. 39 year, straight line.
35% tax rate on income, 15% on long term capital gains, 25% depreciation recapture.
ONLY FIND THE AFTERTAX IRR*
Given the following information, 1. Assuming a sales price of $1,100,000.
Finally, calculate the after tax IRR for the investment.
Purchase Price: $900,000
Loan: $750,000, 5%, 25 years (annual payments)
Year 1 NOI: $100,000
Year 2 ATCF: $33,000
Year 3 ATCF: $34,000
Use an 85/15 ratio for depreciation. 39 year, straight line.
35% tax rate on income, 15% on long term capital gains, 25% depreciation recapture.
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Cornerstones of Managerial Accounting
Authors: Mowen, Hansen, Heitger
3rd Edition
324660138, 978-0324660135
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