Solution-What would be your net profits

What would be your net profits

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After graduation, you put together a proposal and managed to purchase a building downtown for $5 million and financed the acquisition with a 70 LTV interest-only loan. Three years later, you sold the property for $6 million. Assume 70% of the property was attributed to structure and that the structure was depreciated over a 40-year period. Also, assume that capital gains are taxed at 15% and that accumulated depreciation is taxed at 25%. Also, assume a 3% sales cost for the building and a 50 basis-point prepayment penalty for the loan. What would be your net profits?

Reference no: EM133114243

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What would be your net profits

Reference no: EM133114243

Reference no: EM133114243

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