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On December 31 st , 2018 you buy a property for $2,500,000. On December 31 st , 2019 that property yields $210,000 of net cash

On December 31st, 2018 you buy a property for $2,500,000. On December 31st, 2019 that property yields $210,000 of net cash flow which you take and spend on a New Years Eve bash. Also, on December 31st, 2019 the property is appraised at $2,600,000 in value, but you dont sell it then. On December 31st, 2020 the property yields 8% more than it did in the prior year in net cash flow which you spend on another bash, in part to celebrate the fact that you sold the property that very day for $2,800,000. There are no other cash flows from this investment.

(Note: This setup is identical for several questions)

  1. What is the simple HPR total return on your investment in this property for the calendar year 2019?
  2. What is the simple HPR total return on your investment in this property for the calendar year 2020?
  3. What is the IRR (per annum) on your investment in this property cradle-to-grave (that is, over the entire 2-year period you held the property, from purchase to sale)?

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