C. Agree to rescission of the contract.
D. Sue for specific performance.
Given the following information, compute the effective tax rate for the particular piece
of property in percentage terms. Market value of property: $325,000, Assessed value of
property: $250,000, Exemptions: $50,000, Taxes paid: $5,363.
Given the following information regarding an income producing property, determine
the internal rate of return (IRR) using levered cash flows. Expected Holding Period: 5
years; 1st year Expected NOI: $89,100; 2nd year Expected NOI: $91,773; 3rd year
Expected NOI: $94,526; 4th year Expected NOI: $97,362; 5th year Expected NOI:
$100,283; Debt Service in each of the next five years: $58,444; Current Market Value:
$885,000; Required equity investment: $221,250; Net Sale Proceeds of Property at end
of year 5: $974,700; Remaining Mortgage Balance at end of year 5: $631,026.