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Question 7 25 points (CHAPTER 12) Rudolph investments specializes in buying Chnstmas tree ornaments production facities. It is planning to purchase yet another one, and

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Question 7 25 points (CHAPTER 12) Rudolph investments specializes in buying Chnstmas tree ornaments production facities. It is planning to purchase yet another one, and to finance the purchase with a participation loan. Below is the information (all numbers in for Rudolph Investments anticipated annualized before tax cash flows (BTCSI for the 2.year holding period: Year Year Year 2 Year 2 Purchase price 1,500,000 Net Operating Income 150 000 200,000 Wesale price 000.000 Loan amount 1.000.000 Loan payments.000 95,000 Remaining loant balance 900,000 Equity invested 500.000 Participation payments DOO 47,000 Participation payment on sale 100.000 ETCI 30 000 68,000 BTCF from sale 1.000.000 Calculate the lenders annual rate of return, or the sumin that Hutton investments makes loan payments MONTHLY For that you would need to follow two steps Step 1: Financial Calculator Keys CFO C01 FOT CO2 FO2 CO3- F03 IRR CPT Question 7 25 points (CHAPTER 12) Rudolph investments specializes in buying Chnstmas tree ornaments production facities. It is planning to purchase yet another one, and to finance the purchase with a participation loan. Below is the information (all numbers in for Rudolph Investments anticipated annualized before tax cash flows (BTCSI for the 2.year holding period: Year Year Year 2 Year 2 Purchase price 1,500,000 Net Operating Income 150 000 200,000 Wesale price 000.000 Loan amount 1.000.000 Loan payments.000 95,000 Remaining loant balance 900,000 Equity invested 500.000 Participation payments DOO 47,000 Participation payment on sale 100.000 ETCI 30 000 68,000 BTCF from sale 1.000.000 Calculate the lenders annual rate of return, or the sumin that Hutton investments makes loan payments MONTHLY For that you would need to follow two steps Step 1: Financial Calculator Keys CFO C01 FOT CO2 FO2 CO3- F03 IRR CPT

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