A retail shopping center is purchased for $2.1 million. During the next four years, the property appreciates at 4 percent per year. At the time of purchase, the property is financed with a 75 percent loan-to-value ratio for 30 years at 8 percent (annual) with monthly amortization. At the end of year 4, the property is sold with 8 percent selling expenses. What is the before-tax equity reversion?
Answer to relevant QuestionsCompare the advantages of competitive bidding for a general contractor with negotiated cost plus fee. What is the argument for using a maximum cost with sharing of overruns or savings between developer and general ...If your savings account earn an annual rate of 5.5% compounded weekly, how much did you deposit 10 years ago if your account's present balance is $125,000? a. $72,139.69 b. $85,000.57 c. $100,059 d. None of the aboveList and describe three goals of an organization’s internal audit function.Kaui Surf Boards is seeking to raise capital from a large group of investors to expand its operations. Those investors currently hold the S&P 500 index, which has a standard deviation of 18% and expected return of 10%. Kaui ...Suppose Ann is working on a project with John. Both must decide whether to put into a decent amount of effort into the project. Since Ann is the leader of the project, her contribution determines whether the project will be ...
Post your question