The financial manager at Genesis Company is looking into the purchase of an apartment complex for $550,000.
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The financial manager at Genesis Company is looking into the purchase of an apartment complex for $550,000. Net after-tax cash flows are expected to be $65,000 for each of the next five years, then drop to $50,000 for four years. Genesis’ required rate of return is 9% on projects of this nature. After nine years, Genesis Company expects to sell the property for after-tax proceeds of $300,000. What is the respective internal rate of return (IRR) and net present value (NPV) on this project?
Related Book For
Spreadsheet Modeling and Decision Analysis A Practical Introduction to Business Analytics
ISBN: 978-1285418681
7th edition
Authors: Cliff Ragsdale
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