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Toby paid $50,000 for an investment property that yields $5,000 per annum with 2% per annum increases. Assuming a 7-year holding period and $130,000 reversion,

Toby paid $50,000 for an investment property that yields $5,000 per annum with 2% per annum increases. Assuming a 7-year holding period and $130,000 reversion, what is the IRR? If a typical market participant would receive a 12% return on periodic cash flows, what would the adjusted rate of return be on this investment?

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