An investor is considering the acquisition of a distressed property which is on Northlake Banks REO list. The property is available for $203,000 and the investor estimates that he can borrow $160,000 at 4.5 percent interest and that the property will require the following total expenditures during the next year:

Inspection	$ 545
Title search	1,090
Renovation	13,000
Landscaping	890
Loan interest	7,245
Insurance	1,845
Property taxes	6,045
Selling expenses	8,000

Required:

a. The investor is wondering what such a property must sell for after one year in order to earn a 20 percent return (IRR) on equity.