Refer to the participation loan example in the chapter. Suppose the participation was reduced to 25 percent

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Refer to the participation loan example in the chapter. Suppose the participation was reduced to 25 percent of the NOI in excess of $100,000 but increased to 75 percent of the gain in value.

a. What is the investor’s before- and after-tax IRR?

b. What is the lender’s IRR?

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Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

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Question Posted: Nov 08, 2018 01:20 PM

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Refer to the participation loan example in the chapter. Suppose the participation was reduced to 25 percent

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