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our company, Oxford Realty Corporation, owns and operates apartment complexes in the South New Jersey area. One of your company's properties, West Concord Apartments, was

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our company, Oxford Realty Corporation, owns and operates apartment complexes in the South New Jersey area. One of your company's properties, West Concord Apartments, was just purchased by your firm for $2,200,000. The property is composed of 9 luxury apartments each of which are rented out for $2000 per month. (All units are currently rented out under long-term leases) Operational costs for the entire apartment complex amount to $11,500 per month. Your firm expects to be able to reinvest the monthly net income from the property at an annual reinvestment rate of 3% over the next 12 years. At the end of that 12 year period your company intends to sell the property for $3,500,000. Q: Based upon this information, calculate your company's Horizon Yield (i.e., annualized Holding Period Yield) for this investment. walk yourself through the 5-step process to calculate the Horizon Yield, labeling each step) our company, Oxford Realty Corporation, owns and operates apartment complexes in the South New Jersey area. One of your company's properties, West Concord Apartments, was just purchased by your firm for $2,200,000. The property is composed of 9 luxury apartments each of which are rented out for $2000 per month. (All units are currently rented out under long-term leases) Operational costs for the entire apartment complex amount to $11,500 per month. Your firm expects to be able to reinvest the monthly net income from the property at an annual reinvestment rate of 3% over the next 12 years. At the end of that 12 year period your company intends to sell the property for $3,500,000. Q: Based upon this information, calculate your company's Horizon Yield (i.e., annualized Holding Period Yield) for this investment. walk yourself through the 5-step process to calculate the Horizon Yield, labeling each step)

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