Cash On Cash+Return+ +defined

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Cash-on-Cash Return

•  Net Cash Flow / Equity Invested

  Acquisition Year 1 Year 2 Year 3 Year 4 Year 5


Purchase Price ($4,000,000)  
Cash Flow   $300,000 $309,000 $318,270 $327,818 $337,653
Net Sale Proceeds   $4,000,000
Total Cash Flow ($4,000,000) $300,000 $309,000 $318,270 $327,818 $4,337,653
Cash-on-Cash Return   7.50% 7.73% 7.96% 8.20% 8.44%

Average Cash-on-Cash 7.96%

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