An investor wants to purchase a new office property for $ 2 . 2 million. However, she
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Question:
An investor wants to purchase a new office property for $ million. However, she decides whether to use a percent loan at percent interest for years.
NOI is expected to be $ per year and increase at percent annually, the same rate at which the property is expected to increase in value. The building and improvements represent percent of value and will be depreciated over years : per year with no midmonth convention for year The project is expected to be sold after five years. Assume a percent tax bracket for ordinary income, a percent for depreciation recapture, and percent for capital gains taxes.
What would the BTIRR and ATIRR be after financing assume monthly mortgage amortization
Can you perform the calculations please
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