An investor group is negotiating the purchase of a currently…
An investor group is negotiating the purchase of a currently operating hotel. The asking price that the seller presents is $10 Million dollars, and the investor´s team has projected cash flows for the property that result in an IRR of 15% for the purchasing investor, with the asking price. If the investor managed to negotiate the price of the purchase down to $9 Million, which recalculated IRR (with the new $9 Million price) would be a POSSIBLE result?