Yuting is considering buying a unit of townhome in Clearwater and renting it out for the income. The townhome will cost $$220,000$ and she is planning to buy it with all cash. Here are some additional facts:

Yuting figures she can rent out the townhome for $$24000$ a year, and the rent will grow by approximately $3\%$ per year. She'll have to pay property taxes of $$3000$ and property insurance of $$2000$ at the end of the year, and she assumes the property tax will grow at $3\%$ per year as well, since real estate generally appreciates. And she is figuring on additional miscellaneous expenses of $$1000$ per year.

All the income from the townhouse has to be reported on their annual tax return. Currently, Yuting has a tax rate of $24\%,$ and she thinks her rate will continue for the foreseeable future.

Her accountant has explained to her that she can depreciate rental property based on MACRS $27\mathrm{.}5$ year straight$-$line depreciation system.

At the end of year $10$ she plans to resell the townhome for $$500,000.$ Since this is not her preminary residence, she will pay $15\%$ capital gain on the income.

$-$Calculate the cash flow for this investment each year. If she requires $12\%$ annual return, what are the NPV and IRR for this investment?

$-$Conduct a sensitivity analysis $($a two$-$input data table$)$ to show IRR as a function of resell value and rent. Highlight the combinations that are not profitable.