Sally and Dave are considering buying an investment apartment. - The condo costs $400,000, and they're planning to buy it in cash - They can rent out the condo for $24,000 per year ($2K per month) - There are additional miscellaneous expenses of $2,400 per year (condo fees of $200 per month). - Property taxes are $1,500 annually. - Currently, Sally and Dave have a tax rate of 30%. - Assume the full cost of the condo depreciates over 30 years. - Sally and Dave assume that at the end of the 10 years they'll be able to sell the condo for $680,000. What is IRR of this investment? . Consider the same investment case If they take a mortgage with 10% down payment and 4% interest rate, for 30 years. Owners repay the remaining part of the loan to the bank after 10 years after selling the property) what is the IRR