ATIRR. You can buy a building for $1,000 and sell it after 10 years for $1,100. (NOI = 70; Annual Depreciation $50; Ordinary Tax Rate 40%; Depreciation Recapture Tax 30%; Capital Gain Tax 20%) What is the After Tax Rate of Return? Selected Answer: 5.66% Answers: O 5.66% 5.01% 5.36% 5.84% 6.05% 6.33% 6.77% 7.00%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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ATIRR. You can buy a building for $1,000 and sell it after 10 years for $1,100. (NOI = 70; Annual Depreciation = $50; Ordinary Tax Rate = 40%: Depreciation
Recapture Tax = 30%; Capital Gain Tax = 20%) What is the After Tax Rate of Return?
Selected Answer:
5.66%
Answers:
5.66%
5.01%
5.36%
5.84%
6.05%
6.33%
6.77%
7.00%
Transcribed Image Text:ATIRR. You can buy a building for $1,000 and sell it after 10 years for $1,100. (NOI = 70; Annual Depreciation = $50; Ordinary Tax Rate = 40%: Depreciation Recapture Tax = 30%; Capital Gain Tax = 20%) What is the After Tax Rate of Return? Selected Answer: 5.66% Answers: 5.66% 5.01% 5.36% 5.84% 6.05% 6.33% 6.77% 7.00%
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