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Use the following information to answer the questions in the assignment. Assume that you can purchase a 3-bedroom rental townhome for $275,000 in Cache Valley,
Use the following information to answer the questions in the assignment. Assume that you can purchase a 3-bedroom rental townhome for $275,000 in Cache Valley, Utah. The down payment required is 10\%. You finance the remaining balance with a 2.75\% 30-year fixed term loan. You estimate that your annual property taxes will be $1,700 and annual homeowners insurance expense to be $700. You plan on charging $1,350 per month in rent for 15 years and then selling the property for an estimated $375,000. The appropriate inflation-adjusted discount rate is 2.5% per annum. What is the NPV of this rental investment? [Round the final answer to the nearest cent] What is the annualized IRR of this rental investment? [Enter the final answer in as a percent not a decimal (e.g. 5.55\% = 5.55)] Use the following information to answer the questions in the assignment. Assume that you can purchase a 3-bedroom rental townhome for $275,000 in Cache Valley, Utah. The down payment required is 10\%. You finance the remaining balance with a 2.75\% 30-year fixed term loan. You estimate that your annual property taxes will be $1,700 and annual homeowners insurance expense to be $700. You plan on charging $1,350 per month in rent for 15 years and then selling the property for an estimated $375,000. The appropriate inflation-adjusted discount rate is 2.5% per annum. What is the NPV of this rental investment? [Round the final answer to the nearest cent] What is the annualized IRR of this rental investment? [Enter the final answer in as a percent not a decimal (e.g. 5.55\% = 5.55)]
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