You are acquiring an apartment building at the beginning of the current year for $10 million...

  

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You are acquiring an apartment building at the beginning of the current year for $10 million at a 6% cap rate and financed with 70% interest only debt at 5% and 30% equity investment. The net op- erating income increases by 3% each year and the property will be sold at the end of three the going in cap rate. What is the internal rate of return after debt on the investment? years at You are acquiring an apartment building at the beginning of the current year for $10 million at a 6% cap rate and financed with 70% interest only debt at 5% and 30% equity investment. The net op- erating income increases by 3% each year and the property will be sold at the end of three the going in cap rate. What is the internal rate of return after debt on the investment? years at

Answer rating: 100% (QA)

To calculate the internal rate of return IRR after debt on the investment we need to determine the c... View the full answer