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You are considering the acquisition of a small office building. The purchase price is Srr 5 , 0 0 0 . Seventy - five percent
You are considering the acquisition of a small office building. The purchase price is Srr Seventyfive percent of the purchase price can be borrowed with a year, percent mortgage. Payments will be made annually. Upfront financing costs will total three percent of the loan amount. The expected beforetax cash flows from operationsassuming a year hotaing periodare as follows:
tableYearBICHE$
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