$$\begin{array} { l r r }
& \text { If sold taday } & \text { If sold next year } \\
\text { Sale price } & \$ 2,500,000 & \$ 2,650,000 \
\text { Martgage balance } & 1,000,000 & \mathbf { 9 0 0 , 0 0 0 } \
\text { Capital gain tax } & \underline{112,500} & \underline{135,000} \
\text { Cash flow } & \$ 1,387,500 & \$ 1,615,000 \
\text { NOl over next year } & & \$ 50,000
\end{array}$$
-Consider the information in the table above. What is the marginal rate of return for keeping the property one additional year?

Question

$$\begin{array} { l r r } 
& \text { If sold taday } & \text { If sold next year } \\
\text { Sale price } & \$ 2,500,000 & \$ 2,650,000 \
\text { Martgage balance } & 1,000,000 & \mathbf { 9 0 0 , 0 0 0 } \
\text { Capital gain tax } & \underline{112,500} & \underline{135,000} \
\text { Cash flow } & \$ 1,387,500 & \$ 1,615,000 \
\text { NOl over next year } & & \$ 50,000
\end{array}$$
-Consider the information in the table above. What is the marginal rate of return for keeping the property one additional year?

Quizplus · Accepted Answer

The Answer is B

-Consider the Information in the Table Above