1. Consider the information in the table below. What is the rate of return the investor would earn on the additional funds invested in renovating the property, assuming that the investor would not borrow any additional funds? Show work

After-tax cash flow from operations if renovated	$75,000
After-tax cash flow from operations if not renovated	-60,000
Incremental cash flow from operations	$15,000
Sale proceeds if renovated	$2,500,000
Sale proceeds if not renovated	2,250,000
Incremental cash flow from sale	$250,000
Renovation costs	$250,000