You purchase a property for $125,000. Your cash flow from the first year is $6,000. Each year,

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You purchase a property for $125,000. Your cash flow from the first year is $6,000. Each year, your cash flow grows by 3%. After 4 years (4 cash flows), you sell the property for $175,000.

What is your internal rate of return on this investment property?

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Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Posted Date: Jul 20, 2023 06:57 AM

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You purchase a property for $125,000. Your cash flow from the first year is $6,000. Each year,

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To calculate the internal rate of return IRR on this investment property we need to find the discoun... View the full answer

Fundamentals Of Corporate Finance

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