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Business, 17.12.2019 20:31 kingbudd129

1. you pay $1m for a property with 9% cap rate, keep it for 5 years, and sell at the end of year 5 at the same cap rate. the selling costs are 5% of the price. what is your irr? enter your answer in percent, but without percent sign (including year t). 2. you are doing the same as above but instead of paying cash, you take a 70% ltv io loan at 5% annual rate. what is your irr? (don’t use the formula for returns as function of ltv, but compute all the cash flows) 3. in addition to the loan above you take a mezzanine io loan of $200k at 8% annual rate. what is your irr?

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