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Scenario: You ate considering investing in real estate-both for the short-term cash flows and the potential long-term.capital gains-and are rental houses or a small apartment

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Scenario: You ate considering investing in real estate-both for the short-term cash flows and the potential long-term.capital gains-and are rental houses or a small apartment complex). It lis likely that you will imvest in only one of these properties at this time. The general deta regarding these investments is as follows: Given your other assumptions, complete the foliowing two tables and then use your computations to answer several questions. Round all amounts to the nearest whole dollar. (Hint: Dont round intermediate caiculations; Also, don t forget that capilal gains are taxed at 1506 if properties are sold for more than their original purchase price.) The net discounted return expected from an investment in the office bullding-after deducting the cont of the investment-is Now perform a comparable analysis for the residenbial lease property: The aet discounted return expected from an investment in the rental homes tract-afer dedicting the cost of the inveitmant-is

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