Acquire via a like-kind exchange

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Assume you want to sell an asset worth $2 million with a $1 million mortgage in place and have identified a $2 million U.S. Government-leased office building to acquire via a like-kind exchange. Assuming that you can finance 70% loan-to-value in the U.S. Government building, how much capital will you realize today? Assume a 3% sales cost and a 1% loan fee on the new financing. Present your work in Excel.

Reference no: EM133002391

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