Question
Assume a property investment with horizon of fifive years, a fifixed market interest rate of 5% and a 40% increase in terminal value of the
Assume a property investment with horizon of fifive years, a fifixed market interest rate
of 5% and a 40% increase in terminal value of the flflat over the initial purchase price of ↔1,879,815.
Rent is assumed to be constant at ↔57,180 per year.
(1.1) What is the NPV of this property investment?
(1.2) What percentage would the IRR be for this property investment?
Include the steps taken and the final answers rounded up to 2 decimal points.
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