B) Rental Unit
	The smiths are thinking about buying a rental unit that has the following cash flows. They want to know if this is a good investment.
	Cost	250,000
	Monthly Rent (2% annual increase)	1,600
	Annual Expenses (2% inflation)	$1,000
	Annual appreciation	3%
	The next best investment returns 10%	10%
	They plan on keeping the property for five years then sell it.	5	yrs.
	Calculate the NPV and IRR
	Ignore tax
	Value of the house in five years?		< use a future value calculation
	Investment	$ (250,000)
	Year 1	$ 18,200
	Year 2	$ 18,564
	Year 3	$ 18,935
	Year 4	$ 19,314
	Year 5	$ 19,700
	NPV at 10%
	IRR
	Should they make this investment?