Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A real estate investment has the following expected cash fiows. begin{tabular}{lr} YEAR & CASH FLOW 0 & $87,886.00 1 & $24,863.00 2

image text in transcribed
A real estate investment has the following expected cash fiows. \begin{tabular}{lr} YEAR & CASH FLOW \\ 0 & $87,886.00 \\ 1 & $24,863.00 \\ 2 & $25,981.00 \\ 3 & $54,486.00 \\ 4 & $38,054.00 \end{tabular} What is the IRR of this investment? Answer format: Percentage Round to: 2 decimal places (Example: 9.24%,% sign required. Will accept decimal format rounded to 4 decimal places (ex, 0.0924)) An investor on the 'Shark Tank' has offered an entrepreneur a deal with his company. Part of the deal is the investor wants a royalty on his investment The investor will "lend" the entrepreneur $2.32.25300 but wants $3,00 per unit sold The entrepreneur expects to sell 23,049,00 units per year each year going forward in perpetuity. What is the IRR for the investor

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Theory Of Interest

Authors: Friedrich A. Lutz

2nd Edition

1138539074,1351472836

More Books

Students also viewed these Finance questions

Question

years.

Answered: 1 week ago