You bought an apartment building 5 years ago for 250000, Ask an Expert

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You bought an apartment building 5 years ago for $250,000. Annual rental income is $50,000. Operating expenses including maintenance are 14,000 per year. Straight line depreciation has been used with an estimated life of 25 years with no salvage. You have been offered exist400,000 for the building today. You want to earn 11% on your money. Your tax rates are 35% on ordinary income and 15% on capital gains.

What IRR will you have made on this building if you sell it now?

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Financial Management, Finance

Category:- Financial Management
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