Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A warehouse is bought at the capitalization ratio of 8.5% for $1,000,000. The buyer used a 65%
LTV loan with 6% interest amortized over 15 years, with monthly payments. What is the expected
before-tax cash flow for the first year of operations?
$19,179
$5,485
Impossible to answer the question from the information provided.
$65,821
$85,000
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Transcribed Image Text:A warehouse is bought at the capitalization ratio of 8.5% for $1,000,000. The buyer used a 65% LTV loan with 6% interest amortized over 15 years, with monthly payments. What is the expected before-tax cash flow for the first year of operations? $19,179 $5,485 Impossible to answer the question from the information provided. $65,821 $85,000
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