You are planning to purchase a new house or condominium to use as your primary residence. This assignment will analyze some of the financial aspects of doing so. The final purchase price is $480,000 and, if you need a mortgage from the bank, your down payment will have to be 20% of the purchase price. The mortgage is a 30-year fixed rate loan with an Annual Percentage Rate (APR) of 5.40%. You will incur a one-time closing cost of $6,000 and you will add this closing cost to the loan borrowed; if no loan, you will still pay this $6,000 with cash. The mortgage will be amortized over the 30-year period with equal monthly payments. Exactly right after you pay the 60th monthly payment (5 years after the loan starts), you can sell the house for a net proceeds of $675,000 (this is the money you actually received after deducting all sale expenses but BEFORE you pay off your remaining loan principal). Ignore the capital gain tax or property tax in this case. 5. Calculate the annual Internal Rate of Return (IRR) if an all-cash (no finance) investment is involved; i.e. you pay the full purchase price plus the closing cost at the beginning and collect all! net sale proceeds at the end. 6. Assuming you can either finance the purchase as (4) or purchase with all-cash as (5) and there! are no other differences between the two strategies, conduct an incremental IRR analysis (must show the procedure) to determine which strategy you should select and provide calculation and explanation for your decision. (Your MARR is at 6.50%)