6. A purchaser makes an initial investment of $12,000 that produces cash flows of $0 at the end of period one, $0 at the end of period two, $0 at the end of period three, and $15,641 at the end of period four. What is the IRR of this investment? (There is no reversion or sales price.) What does the $15,641 represent in terms of interest earned and initial investment? 7. A purchaser makes an initial investment of $10,000 that produces cash flows of $0 at the end of period one, $1,000 at the end of period two, $5,000 at the end of period three, and $7,900 at the end of period four. What is the IRR of this investment? 8. Suppose an investor is interested in purchasing the following income producing property at a current market price of $2,500,000. The prospective buyer has estimated the expected cash flows over the next four years to be as follows: Year 1 = $100,000, Year 2 = $150,000, Year 3 $200,000, Year 4 = $250,000. If the estimated proceeds from selling the property at the end of year four is $3,000,000, what is the internal rate of return (IRR) of the project? 9. Assume that an industrial building can be purchased for $1,500,000 today, is expected to yield cash flows of $80,000 for each of the next five years (with the cash flows occurring at the end of each year), and can be sold at the end of the fifth year for $1,625,000. Calculate the internal rate of return (IRR) for this transaction