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QUESTION 6 Consider the following Scenario B: Purchase Price: $530,000 Amount of funds borrowed: 85% Net income before taxes: $1,643 Remaining After Tax Cash Flow

QUESTION 6

  1. Consider the following Scenario B:
  • Purchase Price: $530,000
  • Amount of funds borrowed: 85%
  • Net income before taxes: $1,643
  • Remaining After Tax Cash Flow From Operations: $24,447
  • Total Return: $28,600
  1. Using the formula sheet provided under the 'Contents' organizer (on the Home page), calculate:
  2. Amount financed (round to nearest dollar)
  3. Amount of equity (round to nearest dollar)
  4. Net Income Return on Investment (round to nearest 10th of a percen)
  5. Cash Return on Investment (round to nearest 10th of a percent
  6. Total Return on Investment (round to nearest 10th of a percent)

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