1. a property could be sold today for $2.5 million. it has a loan balance of $1.25 million and, if sold, the investor would incur a capital gains tax of $300,000. if not sold, the property is expected to produce net operating cash flow of $55,000 over the next year. assuming selling costs of 5% of the purchase price: a. what is the investor's return on investment base (or investable equity)? b. if they have their eye on another investment opportunity with an expected return of 7.5%, should they sell?