Question
What is the IRR of a property that is purchased for $2,500,000 and is sold at the end of year 7 for $3,125,000. The property
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What is the IRR of a property that is purchased for $2,500,000 and is sold at the end of year 7 for $3,125,000. The property is going to be remodeled in year one so there will be no cash flow. In year 2, the cash flow is $125,000, year 3 is $135,000, year 4 is $145,000, year 5 is $150,000, year 6 is $165,000 and year 7 is $175,000.
9.17%
6.85%
5.34%
12.37%
7.67%
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Ethics In Finance
Authors: John R. Boatright
3rd Edition
1118615824, 978-1118615829
