Real Estate Math
An investor wants a 10% cash-on-cash return. They invested $120,000 cash. What annual cash flow do they need?
A$10,000
B$12,000✓ Correct
C$15,000
D$18,000
Explanation
Cash-on-cash return = Annual Cash Flow / Equity Invested. Required cash flow = $120,000 × 10% = $12,000 per year.
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