An investor purchased a property for $3,000,000 with $50,000 in acquisition costs and anticipates holding...
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An investor purchased a property for $3,000,000 with $50,000 in acquisition costs and anticipates holding the property for five years. The forecast first year NOI is $240,000 and is projected to increase 3 percent annually. The first and last years cost recovery is estimated to be $59,955 and all other years $62,562. The proceeds of sale at the end of the holding period are $3,248,212. The investors ordinary tax rate is 37 percent. What is the after-tax IRR generated from following after cash flow?
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