The neighborhood is declining, so your selling cap rate is 11% in questions 3-4. You have...

  

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The neighborhood is declining, so your selling cap rate is 11% in questions 3-4. You have limited liability: you can walk away anytime. If you walk away in year t, all cash flows starting year t become zero (including year t). What is your IRR? The neighborhood is declining, so your selling cap rate is 11% in questions 3-4. You have limited liability: you can walk away anytime. If you walk away in year t, all cash flows starting year t become zero (including year t). What is your IRR?

Answer rating: 100% (QA)

To calculate the Internal Rate of Return IRR we need to determine the discount rate that sets the Ne... View the full answer