Question $5$

An investor is considering an investment property, but will only pay the price that will result in their desired IRR, given expected cash flows. The property is

expected to generate the following cash flows from operations: year $1$:$$12,000$; year $2$:$$12,600$; year $3$:$$13,230$; and year $4$:$$13,890.$ Assume that at the

end of year $4,$ the property could be sold to net $$190,000.$ What price must an investor offer to receive an expected IRR of $10\%?$

$$139,518$

$$153,396$

$$159,752$

$$145,254$

$$170,522$