Question
Your brother gives you an investment option. You will receive rent of $13,365; $10,126; $5,126; and $1,253 over the next four respective years. Your expenses
Your brother gives you an investment option. You will receive rent of $13,365; $10,126; $5,126; and $1,253 over the next four respective years. Your expenses will be $7,362; $6,146; $4,635; and $1,103. Your discount rate is 11%. If the price of the investment is $10,200, what is your IRR if you bought this investment?
A. 6.56%
B. 4.98%
C. 5.36%
D. 5.78%
E. 2.75%
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Public Finance
Authors: Steven G. Medema, Carl Sumner Shoup
1st Edition
0202307859, 978-0202307855
