Real Estate Math
A property investor requires a minimum 10% cash-on-cash return. They invest $75,000 in equity. What minimum annual cash flow before taxes (CFBT) is required?
A$7,500✓ Correct
B$8,250
C$6,500
D$9,000
Explanation
Required CFBT = Equity × Required return = $75,000 × 10% = $7,500. To solve this, multiply the relevant values: $75,000 at 10%..
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