Assuming that the investor wants to hold the property for 5 years, conduct a discounted cash flow analysis (DCF) to calculate the after-tax IRR and NPV for this investment. The investor received a lender’s offer for a 30year mortgage at 7.5% (compounded monthly) with a loan to value ratio (LTV) of 75%. No financing costs (e.g. origination fees) or discount points occur. Considering this FRM, what are the after-tax NPV and IRR Is this investment worth undertaking.

Answer rating: 100% (QA)

To calculate the aftertax NP and IRR for this investment we need to first calculate the aftertax cas... View the full answer