Rudolph Investments specializes in buying Christmas tree ornaments production facilities. It is planning to purchase yet another one, and to finance the purchase with a participation loan. Below is the information (all numbers in $) for Rudolph Investments' anticipated annualized before-tax cash flows (BTCS) for the 2-year holding period:

	Year 0			Year 1	Year 2			Year 2
Purchase price	1,000,000		Net Operating Income	150,000	200,000		Resale price	2,000,000
Loan amount	600,000		Loan payment	55,000	55,000		Remaining loan balance	450,000
Equity invested	400,000		Participation payment	5,000	20,000		Participation payment on sale	200,000
			BTCF	90,000	125,000		BTCF from sale	1,350,000

Calculate the lender's annual rate of return, or the IRR, assuming that Rudolph Investments makes loan payments MONTHLY. For that, you would need to follow two steps:

Step 1: "financial calculator keys"

CFo = C 01 = F 01 = C 02 = F 02 = C 03 = F 03 = IRR CPT

Step 2:

The answer from Step 1 is then multiplied by . Put "1" if no additional math is required.

The resulting return for the lender is percent. Put the answer in percent, not in decimals, and round to 2 decimal places. For example, if you got 12.34 percent, put just 12.34. Do NOT put the "%" sign.

True or false? The higher the participation percentages applied to net operating income in excess of some agreed upon dollar amount, the higher the investor's BTIRR. Put "true" or "false".