Question
You purchased a property with cash for $227,000, and received income of $21,000 in year 1, $20,000 in year 2, $14,200 in year 3, $31,000
You purchased a property with cash for $227,000, and received income of $21,000 in year 1, $20,000 in year 2, $14,200 in year 3, $31,000 in year 4, $31,500 in year 5, and sold the property at the end of year 5 for $245,200.
a)If the investor requires a 10% return, what is the NPV?
b)What is the IRR on this investment?
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Governing The Modern Corporation Capital Markets Corporate Control And Economic Performance
Authors: Roy C. Smith, Ingo Walter
1st Edition
0195171675,0199924015
