A real estate investor likes to "Alip" houses. That is, he likes to buy a house at a low price and then "flip" or sell the house for a higher price. The investor is looking at a foreclosed house that will cost $234.769.00 today. He will invest an additional $42,953.00 in the first year of owning the house to upgrade its features. He then believes he can sell the house for $414,225.00 at the end of the second year. What is the IRR of this investment? Answer format: Percentage Round to: 2 decimal places (Example: 9.24\%, \% sign required. Wii accept decimal format rounded to 4 decimal places (ex: 0.0924)) A real estate investor likes to "flip" houses. That is, he likes to buy a house at a low price and then "flip" or sell the house for a higher price. The investor is looking at a foreclosed house that will cost $230,000 today. He will invest an additional $50,000 in the first year of owning the house to upgrade its features. He then believes he can sell the house for $400,000 at the end of the second year. What is the IRR of this investment? SOLUTION: NPV=0=(1+IRR)1FCF1+(1+IRR)2FCF2+FCF0 NPV=0=(1+IRR)1$50,000+(1+IRR)2$400,000$230,000 IRR=21.45% USING FINANCIAL. CALCULATOR: CF0=230000,C01=50000,C02=400000,CPTIRR=21.45