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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
- 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
- Using the formula sheet provided under the 'Contents' organizer (on the Home page), calculate:
- Amount financed (round to nearest dollar)
- Amount of equity (round to nearest dollar)
- Net Income Return on Investment (round to nearest 10th of a percen)
- Cash Return on Investment (round to nearest 10th of a percent
- Total Return on Investment (round to nearest 10th of a percent)
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