Question: Please give the answer and the process of calculation 1) How much should an investor pay for a property that is expected to generate annual
Please give the answer and the process of calculation

1) How much should an investor pay for a property that is expected to generate annual triple net operating income of $500,000 for ten years with a sale value at the end of the tenth year of $8 million to achieve a 12% unleveraged compound annual rate of return? a) $2.6 million b) $3.6 million c) $5.4 million d) $8.0 million 2) Referring to the prior question, if the investor borrows 80% of the purchase price at 6% interest only for ten years, what will be the investor's leveraged compounded before tax annual rate of return? a) 18.0% b) 28.4% c) 34.4% d) 51.5%
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