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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 Handbook Of Financing Growth
Authors: Kenneth H. Marks, Larry E. Robbins, Gonzalo Fernandez, John P. Funkhouser, D. L. Williams
2nd Edition
