[The information presented here applies to questions 11 -- 13] You have purchased a small multi-family building in Livingston, NJ. The net present value of the cash flows from your equity in the investment is $150,000.

QUESTION 11: If you provided the $600,000 equity investment necessary to acquire the building, what is the present value of the cash flows going to the equity investor?

QUESTION 12: What is the profitability ratio associated with this investment expressed as a percent?

QUESTION 13: What would the profitability ratio expressed as a percent be if the NPV remained the same but investment required an equity contribution of $1,000,000?