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You can purchase a flat for $554,000. The investment will generate $24,000 in cash flows (i.e. rent) each year during the first three years (Assume
You can purchase a flat for $554,000. The investment will generate $24,000 in cash flows (i.e. rent) each year during the first three years (Assume that cash will be received at the end of each year.). At the end of three years you will sell the building for $680,000.
Write down the cash flow stream of the investment; (e.g (10000, 20000, ... , 50000) )
What is the IRR on this investment?
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