The client's goals are 14.5% IRR as well as at least a $2,900,000 value enhancement. Review the
Fantastic news! We've Found the answer you've been seeking!
Question:
The client's goals are 14.5% IRR as well as at least a $2,900,000 value enhancement. Review the financial test results in the matrix below.
| Test | Alternative 1 (as-is) | Alternative 2 | Alternative 3 |
| Cash-on-cash rate of return ($/$%) | 8.50% | 5.75% | 6% |
| Value enhancement | $750,000 | $4,102,000 | $2,500,000 |
| NPV | ($844,780) | $327,400 | ($777,252) |
| IRR | 11.25% | 15% | 13.50% |
If the owner plans on a longer-term hold, which alternative should a real estate manager recommend to the owner?
Expert Answer:
Related Book For 
Posted Date:
