Question
. Calculate the IRR and NPV for the following cash flows. Assume a 15% discount rate Year Project 1 Cash flow Project 2 Cash flow
. Calculate the IRR and NPV for the following cash flows. Assume a 15% discount rate
Year | Project 1 Cash flow | Project 2 Cash flow |
0 | -$20,000 | -$20,000 |
1 | 1,000 | 12,000 |
2 | 3,000 | 15,000 |
3 | 4,000 | 3,000 |
4 | 12,000 | 4,000 |
5 | 15,000 | 1,000 |
9. If your tenant pays you rent of $24,000 a year for 10 years, what is the present value of the series of payments discounted at 10% annually?
10. You are going to invest $300,000 in a real estate investment project that generates the following cash flows.
Year | 1 | 2 | 3 | 4 | 5 |
Cash flow | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 |
Assuming an 11% discount rate, what is the NPV of this project? What is the IRR?
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