I need help with part c

You are considering an option to purchase or rent a single residential property. You can rent it for $2000 per month and the owner would be responsible for malntenance, property insurance, and property taxes. Altemattvely. you can purchase this property for $200,000 and finance it with an 80 percent mortgage loan at 4 percent interest that will fully arnortize over a 30 -year period. The loan can be prepald at any time wth no penalty. You have done research in the market area and found that (1) properties have historically appreciated at an annual rate of 2 percent per year, and rents on similar properties have also increased at 2 percent annually. (2) maintenance and insurance are currenty $1,500.00 each per year and they have been increasing at a rate of 3 percent per year, (3) you are in a 24 percent marginal tax bracket and plan to occupy the property as your principal residence for at least four years; (4) the capital gains exclusion would apply when you sell the property: (5) selling costs would be 7 percent in the year of sale: and (6) property taves have generally been about 2 percent of property value each year. Based on this information you must decide Required: a. In order to eam a 10 percent IRR after taxes on your equity, should you buy the property or rent it for a four-year period of ownership? b. What if your expected period of ownership was to change to five years? Would owning or renting be better if you warted to eam a 10 percent IRR after taxes? c. Approximately, what level of rente would make you indifferent between owning and renting for a four-year period? Assume that a 5 percent after-tax IRR would be the minimum you would need to earn on capital invested in the home