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not sure how to finish Question 4: An apartment building in your neighborhood is for sale for $140,000. The building has four units, which are
not sure how to finish Question 4: An apartment building in your neighborhood is for sale for $140,000. The building has four units, which are rented at $500lper month per unit. The tenants have long-term leases that expire in 5 years. Maintenance and other expenses for upkeep are $8000 annually. A new university is being built in the vicinity and it is expected that the building could be sold for $160,000 after 5 years. Part 1: What is the IRR for this investment? Part 2: Should the investment be accepted if you have a MARR of 12%? Question 4 Gwen: current cost of building = $1403 -> 4 units in building & month rented income per unit - $500 total rented income for all unit = $2k -> annual maintenance expenses = $ 8000 I find: IRR -> IF investment shall be accepted w/ MARR of 12% ASSumption: none Picture: A-2000 H O S 7 4 8 9 10 11 12 1 2 3 - 8000 P= - 140000 solution 140,000 = 50014)(12) - 8000
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