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Suppose that you expect that one year from now, a certain property's before-tax cash flow (PBTCF = NOI-CI) will equal only $15,000 per year under

Suppose that you expect that one year from now, a certain property's before-tax cash flow (PBTCF = NOI-CI) will equal only $15,000 per year under a plausible pessimistic scenario or as much as $25,000 per year under a plausible optimistic scenario. If you borrow an amount such that the loan payments will be $10,000 per year (for certain), then what is your range of expected income return component (equity yield or cash-on-cash) under the no-leverage and leverage alternatives, assuming that the property price is $200,000 and the loan amount is $100,000?

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