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Two investors are considering purchasing a $700,000 apartment that generates monthly revenues of $12,000 and monthly expense of $4000. Both investors are in the 30%

Two investors are considering purchasing a $700,000 apartment that generates monthly revenues of $12,000 and monthly expense of $4000. Both investors are in the 30% tax bracket. What is the return on investment after one year for both investors:

Investor A: All cash purchase

Investor B: Finance 80% with a 20 year 6% interest loan

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