Question
Asked Oct 23, 2019
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What is  internal Rate of Return - Before Tax Cash Flow - BTIRR?  Please provide example.

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Expert Answer

Step 1

Before tax IRR (BTIRR) is the IRR calculated on the before tax cash flows. Here, the before tax cash flows are estimated over the periods, and then IRR of those cash flows are calculated using the known methods of IRR calculation.

Step 2

Let's look into this example.

Consider a property with total value of = $100,000 (Building: $80,000, Land: $15,000). The property generates NOI of $12,000 con...

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