A property is available for purchase for $620,000. The property is expected to generate cash flows of $43,120 per year for the next 5 years. The property is expected to fetch a value of $700,000 at the end of year 5.

What is the IRR for the project? 9.11%

Refer to the same question, what is the NPV for the project? The investors hurdle rate is 8%. $28,573.89

Refer to the same question, should the project be accepted?

a. Yes based on both IRR and NPV

b. No based on both IRR and NPV

c. No based on IRR, Yes Based on NPV

d. Yes based on IRR, No Based on NPV