You are interested in buying a house to rent out for income. Purchase price for the house is $$199,000$ and the market value at the end of $27$ years of use will be $$300,000($assume that you will be able to sell the house for this amount on December ${31}^{st}$ of Year $27).$

The monthly rent you receive on the house will be $$1,700.$ Assume that you will be able to rent the house out every month after purchase. Expenses you will incur include annual taxes $(1\%$ of purchase price of house$),$ home insurance of $$800,$ miscellaneous expenses that average $$1080$ yearly, and depreciation expense.

The depreciable life of the house is $27$ years and it will be fully depreciated when you sell. Your required rate of return $($discount rate$)$ for a real estate investment is $8\%$ and your tax rate is $30\%.$Create a cash flow table that shows your annual cash flows; then use NPV and IRR to evaluate if this house is a good investment. Explain why you would or would not invest.

Thank you! Please show work and formulas on an excel spreadsheet if possible!