Question
Your client buys a rental property (currently at full capacity with active and current accounts) for cash $250,000. Assuming that she could sell herproperty for
Your client buys a rental property (currently at full capacity with active and current accounts) for cash $250,000. Assuming that she could sell herproperty for $500,000 at the end of 6 years, what is her return based on the following cash flows?
End of Year 1 = + 24,000
End of Year 2 = + 24,000
End of Year 3 = - 4,000 and +22,000
End of Year 4 =+ 30,000
End of Year 5 = - 6,000 and+ 30,000
End of Year 6 = + 30,000
(Note - negative numbers represent cash outflows and positive numbers represent cash inflows.) (4)the cost of funding new projects
a.12.5%
b.19.9%
c.20.3%
d.15.5%
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