RENTI You are making a buying-vs-terting decision. You have the following information: The house you like costs $200.000. You expect home values to increase by 10% every year. Property 2 of house value, due at the end of each year. In other words, the property taxes due at the end of year 1 are based on the house value in year 0. Maintenance $1.000 per year. You would take a home mortgage loan with an LTV of 80. Loan Information: 30 year term. fully amortizing with foxed annual payments, annual interest rate remaining balance due upon house sale. When you sell the house the estimated selling expenses are $5,000, and you expect no capital gain taxes. if you instead rent a house just like this one, you'd be paying $15.000 on rent every year. Your income puts you in a 25 income tax bracket Calculate the after tax cash flows if you buy rather than rent. Use them to calculate the after tax internal Rate of Petum (ATHER The anached Excel spreadsheet might help you to put all information and required calculations in an organized way! you are doing all math right, the value in cell E14 should be 13,009.34) a) you can earn a 30 annual return on other investments, investing your money into this house and selling it after 2 years is a use "1" for greater than" or "2" for lower than the 20% required annual return. The calculated after tax IRR equals use "1" for good or for "bad") de financialy. That's because the calculated w round to 2 decimal placer use" for any blank values. you can earn a return on other investments investing your money into this house and selling it after 3 years is a use" for greater than" or " for lower than") the 30% required annual return. The calculated after tax Requals use" for "good" or "Z" for "bad") idea financially. That's because the calculated IRR IS Vround to 2 decimal places use" for any blank values Iching on your required retur, in order for you to be indifferent between buying and not buying for years, the LTV needs to approximately equal RENTI You are making a buying-vs-terting decision. You have the following information: The house you like costs $200.000. You expect home values to increase by 10% every year. Property 2 of house value, due at the end of each year. In other words, the property taxes due at the end of year 1 are based on the house value in year 0. Maintenance $1.000 per year. You would take a home mortgage loan with an LTV of 80. Loan Information: 30 year term. fully amortizing with foxed annual payments, annual interest rate remaining balance due upon house sale. When you sell the house the estimated selling expenses are $5,000, and you expect no capital gain taxes. if you instead rent a house just like this one, you'd be paying $15.000 on rent every year. Your income puts you in a 25 income tax bracket Calculate the after tax cash flows if you buy rather than rent. Use them to calculate the after tax internal Rate of Petum (ATHER The anached Excel spreadsheet might help you to put all information and required calculations in an organized way! you are doing all math right, the value in cell E14 should be 13,009.34) a) you can earn a 30 annual return on other investments, investing your money into this house and selling it after 2 years is a use "1" for greater than" or "2" for lower than the 20% required annual return. The calculated after tax IRR equals use "1" for good or for "bad") de financialy. That's because the calculated w round to 2 decimal placer use" for any blank values. you can earn a return on other investments investing your money into this house and selling it after 3 years is a use" for greater than" or " for lower than") the 30% required annual return. The calculated after tax Requals use" for "good" or "Z" for "bad") idea financially. That's because the calculated IRR IS Vround to 2 decimal places use" for any blank values Iching on your required retur, in order for you to be indifferent between buying and not buying for years, the LTV needs to approximately equal