Ariel Andres, CFA, is contemplating the purchase of a shopping mall. The average annual after tax cash flow for the next ten years is expected to be $30000. The property cost $750000. Andres will put down 25 percent and borrow the rest. In ten years, the property will be sold netting $350000 after taxes. What is the approximate yield on the shopping mail（）
A. 13.8%.
B. 20.35%.
C. 17.2%.
参考答案：C
解析：
Approximate Yield = ( Ave Annual Cash Flow + Annualized capital gain)/Average Investment,. whereAnnualized capital gain = [ (Ending price-cost)/years] and Average Investment = (Ending Price + Cost)/2. Cost is equal to the investor’s equity contribution. In this example, cost = 0.25 × 750000 = 187500. Thus, Approximate Yield = [ 30000 + (350000 - 187500)/10)/[ (350000 + 187500)/2] =46250/268750 =0.172, or 17.2%.