You have the opportunity to purchase a rental house for $75,000. Doing a quick back-of-the-envelope estimate, you estimated the annual rental income stream as shown below. The negative cash flow in year 3 represents the replacement of the heating and airconditioning unit, which is old. At the end of 7 years, given historic property appreciation rates, you believe you could sell the house for $120,000.

What is your internal rate of return on the property if you purchase it for $75,000? State your answer in percent terms with one decimal place and use the % sign, for example, 9.7%.

CFs	-75000
1	6000
2	6300
3	-3000
4	6600
5	6800
6	7000
7	7200	120,000