A real estate investor has come to you with a deal for a property which would cost $400,000 & produce $25000 of income (cash flow) the first year. This income would grow by 5% per year, & at the end of the 10th year the investor projects that the building can be sold for $750,000. What is the annual rate of return you would earn by being apart of this investment?
A real estate investor has come to you with a deal for a property which would cost $400,000 & produce $25000 of income (cash flow) the first year. This income would grow by 5% per year, & at the end of the 10th year the investor projects that the building can be sold for $750,000. What is the annual rate of return you would earn by being apart of this investment?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 4E
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A real estate investor has come to you with a deal for a property which would cost $400,000 & produce $25000 of income (cash flow) the first year. This income would grow by 5% per year, & at the end of the 10th year the investor projects that the building can be sold for $750,000. What is the annual
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