Assume a property investment with horizon of fifive years, a fifixed market interest rate of 5% and

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Assume a property investment with horizon of fifive years, a fifixed market interest rate

of 5% and a 40% increase in terminal value of the flflat over the initial purchase price of ↔1,879,815.

Rent is assumed to be constant at ↔57,180 per year.

(1.1) What is the NPV of this property investment?

(1.2) What percentage would the IRR be for this property investment?

Include the steps taken and the final answers rounded up to 2 decimal points.

Related Book For answer-question

Advanced Accounting

ISBN: 978-1118037911

1st Canadian Edition

Authors: Gail Fayerman

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Posted Date: Mar 10, 2024 10:33 AM

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Assume a property investment with horizon of fifive years, a fifixed market interest rate of 5% and

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Alright lets crunch some numbers for this property investment scenario 11 To calculate the NPV Net P... View the full answer

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