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You are evaluating an office building for a $100,000 purchase price. The lease structure generates a cash flow of $15,000 at the end of each

  1. You are evaluating an office building for a $100,000 purchase price. The lease structure generates a cash flow of $15,000 at the end of each year for the next 10 years. The reversion value at the end of year 10 is zero. What is the IRR, compounded annually? If you require an 8% return, would this be a good investment? Show calculations and explain.

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