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

Please give the answer and the process of calculation 1) How much

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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