What is the total payoff for the lp investor

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Suppose a general partner (GP) invests 20% of the required $6,000,000 equity funding into a real estate development, with a limited partnership (LP) investing the rest. Assume that there is a promote of 25% in case the equity entity receives a return above 8% (hurdle). Assume that the equity entity receives a total payoff of $6,600,000 one year after the investment (10% return). What is the total payoff for the LP investor?

Reference no: EM133205661

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