Suppose that your required rate of return on a condo is 12 percent. You are shown one such property, which has an asking price of $150,000. The sales representative shows you the followin g cash flow projections for a holding period of 6 years:

Year (N) Cash flow

1.) $22,500

2.) 25,000

3.) 30,000

4.) 15,000

5.) 40,000

6.) 100,000

Should you buy the investment? What would be your expected rate of returm?