Question
You are considering the sale of one of your investment properties. If you were to sell the property today, you estimate your after-tax cash flow
You are considering the sale of one of your investment properties. If you were to sell the property today, you estimate your after-tax cash flow from sale would be $500,000. Alternatively, if you were to hold the property for an additional year, you estimate you would realize an after-tax cash flow from operations of $75,000 plus after-tax sales proceeds of $525,000 from sale of the property exactly one year from now. Given this information, what is your expected marginal rate of return associated with holding this property for an additional year? Enter in percentage points rounded to the nearest two decimal points, e.g., enter 18.888% as 18.89.
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