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 following 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? Hint: use NPV and/or IRR to make the decision Calculate both.