Question
You are considering the purchase of a small income-producing property for $150,000 that is expected to produce the following net cash flows: End of the
You are considering the purchase of a small income-producing property for $150,000 that is expected to produce the following net cash flows:
| End of the year | Cash Flow |
| 1 | $50,000 |
| 2 | $50,000 |
| 3 | $50,000 |
| 4 | $60,000 |
What is the internal rate of return (IRR) on this investment?
| 14.29% | ||
| 14.51% | ||
| 14.90% | ||
| 22.56% |
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
