Consider the information in the table above.What is the rate of return the investor would earn on the additional funds invested in renovating the property,assuming that the investor would not borrow any additional funds?

Question

Quizplus · Accepted Answer

The rate of return on the investment in renovating the property is calculated by dividing the incremental annual net operating income ($16,000) by the additional investment in the property ($266,667), which gives a rate of return of 6.0%.

Consider the Information in the Table Above