What is the btirr of this project

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$1,250,000 Property

70% LTV, 11% Interest Rate, 30 Year Loan (payments made monthly)

PGI for each year = $200,000 (3% annual growth)

V&C Expenses = 10% of PGI

Operating Expenses = 35% EGI

90% of value is allocated to building, 10% to land

39 year recovery period

Property value appreciates at 3% per year

Property is sold at the end of year 5

Tax Rate is 36%

What is the BTIRR of this project?

Reference no: EM132058655

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