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17 January, 12:47

Abby purchased a commercial property using all cash at a 11% capitalization rate. What is Abby's cash-on-cash return on the deal ... ?

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  1. 17 January, 13:00
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    11%

    Explanation:

    A cash-on-cash return is a rate of return often used in real estate transactions that calculates the cash income earned on the cash invested in a property.

    Cash on Cash Return = Annual Pre-Tax Cash Flow / Total Cash Invested
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