Interview Question Help

Monkeys, I'm working on a case study assignment and just need to know if I'm missing something obvious here. 

Scenario is to value a MF opportunity in CA, and the instructions includes all applicable inputs you could need except for RE taxes. The includes target IRR, exit cap, and hold period.

Obviously RE taxes in CA are based on the purchase price, but is this not a circular reference? Any tips on how I should be thinking of this?

4 Comments
 
[Comment removed by mod team]
 

You may use goal seek to get the price. And then just hard key this number to replace the function you use; From my perspective, circular might not be matter since there is only a slightly difference which would not affect your number by a lot;

One similar issue is to capitalize the interest cost for a development project.

Hope it may help and best of luck

 
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