Question: A client has requested advice on a potential investment opportunity involving an income producing property. She would like you to determine the internal rate of
A client has requested advice on a potential investment opportunity involving an income producing property. She would like you to determine the internal rate of return of the investment opportunity based on the following information. Expected Holding Period: 5 years; End of first year NOI estimate: $113,900; NOI estimates in subsequent years will grow by 5% per year; Price at which the property is expected to be sold at the end of year 5: $1,615,205.22; Current market price of the property: $1,475,667.71.
b.) If the required (unlevered) rate of return is 14%, should the client invest in this property?
Can you please show how this is done on the ba II plus calculator I do not need to know how to do it out by hand
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