Given the Following Information Regarding an Income Producing Property,determine the After

question 16

Multiple Choice

Given the following information regarding an income producing property,determine the after tax internal rate of return (IRR) .Expected Holding Period: 5 years;1^st year Expected BTCF: $30,656;2^nd year Expected BTCF: $33,329;3^rd year Expected BTCF: $36,082;4^th year Expected BTCF: $38,918;5^th year Expected BTCF: $41,839;1^st year Expected Tax Liability: $7,645;2^nd year Expected Tax Liability: $8,658;3^rd year Expected Tax Liability: $9,708;4^th year Expected Tax Liability: $10,798;5^th year Expected Tax Liability: $6,951;Estimated Before Tax Equity Reversion at end of year 5: $343,674;Expected Taxes Due on Sale at end of year 5: $32,032;Required equity investment: $241,163

• A)11.2%
• B)13.3%
• C)15.4%
• D)20.3%

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