$10,000 is invested in a property. The Year 1 operating cash flow is $1,000. This amount grows annually at 3%. The property is held for 5 years and sold at the end of Year 5, generating Net Sale Proceeds of $20,000. What is the Return on Capital?

Real Estate Financial Modeling / Questions / $10,000 is invested in a property. The Year 1 operating cash flow is $1,000. This amount grows annually at 3%. The property is held for 5 years and sold at the end of Year 5, generating Net Sale Proceeds of $20,000. What is the Return on Capital?

Jul 03