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QUESTION 18 Bob is considering buying a home and selling it in one year. At the buys a house, the price is $100,000. At t-1

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QUESTION 18 Bob is considering buying a home and selling it in one year. At the buys a house, the price is $100,000. At t-1 the house appreciates (1.6. the price poes up) by 20%, and Bob sells it. Bob also pays transaction costs: buying costs are 5% of buying price, selling costs are 8% of selling price. Each time period is a year. Bob does not take any mortgages. Find the NPV of this project if the interest rate is 4% QUESTION 19 Find the IRR of Bob's investment in the previous

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