You are looking at an investment that will generate $100,000 of cash flow starting in year 1,
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Question:
You are looking at an investment that will generate $100,000 of cash flow starting in year 1, increasing annually at 3%. You can buy the property for $2,000,000 and forecast selling it at the end of year 5 for $2,500,000.
1. What is the expected IRR?
2. What is the partitioned IRR for the project?
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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