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If a potential investor estimates the market value of an industrial park to be $10,000,000 and can obtain a loan with the following terms: loan to value of 75%, interest rate of 11%, and 20 years with 3 discount points. The estimated remaining discount expense that can be taken as a tax deduction as a result of a sale after a 7 year holding period is

1) $11,250

2) $78,750

3) $146,250

4) $225,000

5) none of the above.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92410561

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