Question
Two Investment has the following patterns of expect returns: Investment A Year BTCF1 $5,000 2.10,000 3.12,000 4.15,000 4(sale)120,000 Investment B Year BTCF1 $2,000 2.4,000 3.1,000
Two Investment has the following patterns of expect returns:
Investment A Year BTCF1 $5,000 2.10,000 3.12,000 4.15,000 4(sale)120,000
Investment B Year BTCF1 $2,000 2.4,000 3.1,000 4.5,000 4(sale) 180,000
Investment A requires an outlay of $110,000 and Investment A requires an outlay of $120,000
a. What is the BTIRR on each investment?
b. If the BTIRR were partitioned based on cash flow from operating the property (BTCFO)and cashflow from sale of the property (BTCFS), what proportions of BTIRR would be represented byeach?
c. What do those proportions mean?
Please show steps through excel if possible thank you so much!!!
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