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An apartment complex will generate the following cash flows: Year 1: $5000 Year 2: $1000 Year 3: $0 Year 4: $5000 Year 5: $6000 Year

  1. An apartment complex will generate the following cash flows: Year 1: $5000

    Year 2: $1000 Year 3: $0 Year 4: $5000 Year 5: $6000 Year 6: $863.65 The asking price today is $13,000. If you pay the asking price, will the investment be profitable? What is the IRR? For this investment, recreate Exhibit 3-13 on page 70 in the text (referencing Concept Box 3.2).

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