What is the cash flow to each party each year

Reference no: EM133633522

Question: Assume two people buy a property for $2,000,000 that generates cash flow of $150,000. The partners agree that A (Operator) will contribute 10% and B (Money) will contribute 90%. Both parties will receive 8% on their investment and then split the remaining cash flow 20%]80%, respectively, after receiving their preferred returns. Assume any unpaid preferred return earns interest at 8%. Assume the property has NOI of $150,000 in year one and $200,000 in year two. 1. What is the cash flow to each party each year? 2. What is the Return on Investment for each after two years?

Reference no: EM133633522

Questions Cloud

How will this present in the primary care setting : How will this present in the primary care setting? How will you implement any treatment of this diagnosis in your practice for other patients?

How will this reform affect horizontal equity : How will this reform affect horizontal equity? Explain your reasoningce and investment strategies. Your friend, who just graduated from college and landed

Explain the reasonings of cost of equity : Explain the reasonings of cost of equity, weighted average cost of capital, and cost of debt changes corresponding to a firm's financial leverage and capital

Which would be the best choice for an initial antidepressant : Her only medications are an IUD for birth control. You rule out bipolar disorder. Which would be the best choice for an initial antidepressant for this patient?

What is the cash flow to each party each year : What is the cash flow to each party each year and What is the Return on Investment for each after two years

Which medication would nurse expect to find on medication : A nurse is caring for an older client. Which medication would the nurse expect to find on the medication administration record to prevent constipation?

What is the expected return on a portfolio : What is the expected return on a portfolio that is comprised of one-half the higher risk stock and one-half the lower risk asset? b) Calculate the weights

Who are the targets of homophobic bullying : Who are the targets of homophobic bullying? And why? What functions does homophobia meet for young American boys?

What initial care patient have received in emergency center : What initial care should the patient have received in the emergency center? Was the admission to the intensive care area a violation of the EMTALA law?

User Account

All Pages