Question
Please solve by hand using only the financial calculator. Show all the steps. Gina buys an apartment costing 800,000 and also pays 5% of the
Please solve by hand using only the financial calculator. Show all the steps.
Gina buys an apartment costing 800,000 and also pays 5% of the purchase price for buying transactions costs. She lives in this apartment for 10 years and then she sells it (in exactly 10 years). Transaction costs from the sale are equal to 8% of the selling price. Assume that Gina's annual ownership cost of ownership is exactly equal to the annual rent she should pay in order to live in the same apartment. Assume also that the price of Gina's apartment is growing at a rate of 3.4% annually. Evaluate the internal rate of return for this investment.
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