Q#$1$ Use IRR to comapare Cash vs Mortgage?

With all cash buying, all the return of the property $($from rental$)$ is earned and not offsetted by mortgage cost, hence Cash better than Mortgage?

Q#$2$ At required return $7\%,$ find NPVs to compare Cash vs Mortgage $($mutually exclusive$),$ conclusion consistent with IRR?

How about required rate $6\%,$ required rate $5\mathrm{.}5\%,$ required rate $5\%,$ etc., discuss your finding.

$($WITH inflation, rental, property value appreciation$)$

XXXXX $-50,0001008001,524$ XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX $28,21229,19930,221$ XXXXX XXXXX

XXXXX $-200,00020,00020,70021,42522,17422,95023,75424,58525,44626,33627,25828,21229,19930,22131,279367,444$

$*$growing rental$=>20,00020,70021,42522,17422,95023,75424,58525,44626,33627,25828,21229,19930,22131,27932,374$

Q#$3$ Now assume rental grows with inflation, does your conclusion $($Cash vs Mortgage, which is better, by IRR criterion$)$ change? Use your numbers to find support for "Rental is a hedge against inflation".

case $2$: Ownership

XXXXX $-50,000-19,900-19,900-19,900-19,900-19,900-19,900-19,900-19,900-19,900-19,9000000200,000$

XXXXX $-200,00000000000000000200,000$

Q#$4$ When you buy the house just for self$-$use, what's your conclusion $($Cash vs Mortgage, which is better$)$ now based on IRR, explain.

Q#$5$ Now go back to case $1,$ think of areas with lower Rent$-$to$-$Price Ratios $($e$.$g$.,$ San Fransisco, NYC$).$

Try at least three Rent$-$to$-$Price ratios: $8\%,5\mathrm{.}5\%$ and an even lower one, and discuss your findings regarding 'Cash vs Mortgage, which is better, by IRR criterion'.

Q#$6$ Discuss$/$digest$/$summarize your If$-$Then findings so far.

Q#$7($optional$)$ Discuss any additional insights you may have gathered from this exercise $($e$.$g$.,$ see the effects of inflation rates on the scenatios; redo Q#$5$ by accounting for inflation$).$