An individual is planning to pay $400,000 cash for a small motel (ie, price inludes the land valued at $40.000). This porperty has the following expected gross pre-tax income over the next 6 years and then can be sold for $380,000 (and still valued at $40 000) year 1 2 3 4 5 6 Annual Income S 32,500 23.800 34.000 24.500 36.000 26,500 What is the post-tax Internal Rate of Return (IRR) of this investment and does it make sense if MARR is 10%? The Individual's tax bracket is 22% and the capital gains rate is 25% Assume that the purchase and sale take place January 19 of the year NOTE This is considered as a residentail property with a service life of 27.5 years