You have $400,000 to invest in a $3,000,000 Mong Kok residential property and must choose between the
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Question:
You have $400,000 to invest in a $3,000,000 Mong Kok residential property and must choose between the following fully amortizing monthly mortgages.
(i) a $2,600,000 loan at 6% for 10 years and
(ii) a $1,000,000 loan at 5% for 10 years and a second mortgage for $1,600,000 at 6.5% for 10 years.
Question:
Which alternative would you choose and why?
Related Book For
South-Western Federal Taxation 2019 Comprehensive
ISBN: 9781337703017
42th edition
Authors: David M. Maloney, William A. Raabe, William H. Hoffman, James C. Young
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