Consider an investment with an initial purchase price of $200,000 and the following property cash flows: Y1
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Question:
Consider an investment with an initial purchase price of $200,000 and the following property cash flows:
Y1 | Y2 | Y3 | Y4 | |
Operating Cash Flow | $20,000 | $20,000 | $20,000 | $20,000 |
Residual Proceeds | $0 | $0 | $0 | $250,000 |
Total | $20,000 | $20,000 | $20,000 | $270,000 |
The IRR is 15.0%. What is the partitioning of the IRR between Operating Cash Flow and Residual Proceeds, respectively?
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