3 years ago, a townhouse was bought for $300,000. The person paid 11% percent of that upfront and took out a 20 year loan at 2.22%. The townhouse can be sold for $400,000 today.


Calculate the annual IRR over the 3 years. Take into consideration the amount that will be kept as profit if sold for $400,00.

Answer rating: 100% (QA)

To calculate the annual internal rate of return IRR over the 3 years we need to determine the cash flows associated with the purchase financing and sa... View the full answer