Question
How much more could Lucy bid for the house to keep the IRR nonnegative? A longer explanation: how many dollars you can add to 200,000
How much more could Lucy bid for the house to keep the IRR nonnegative? A longer explanation: how many dollars you can add to 200,000 so that IRR goes down to zero. Buying costs still apply (e.g. if you bid extra $100, you actually pay extra $105). Keep the selling price the same as in Q17 (i.e. if you bid more, the selling cash flow does not go up).Hint: this question is designed to be done with financial calculator, not with a regular calculator
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
