What is included in the calculation of the initial equity investment?

The initial equity investment calculation includes the purchase price, acquisition costs, and financing obtained because these factors provide a comprehensive view of the total amount of capital required to acquire a property.

The purchase price represents the nominal value of the property being acquired, while acquisition costs encompass additional expenses such as due diligence, inspections, and any other costs necessary to complete the transaction. Financing obtained is included to assess how much of the purchase is being covered through debt versus the amount that must be covered by the investor's own equity. Together, these components provide a complete picture of the financial commitment associated with the investment and are critical for evaluating the return on investment over time.

In contrast, other options fail to capture the entirety of what constitutes an initial equity investment; they either exclude important elements or focus on a single aspect. By considering all relevant costs and financing, option B is the most accurate representation of what constitutes the initial equity investment.