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Question
An apartment building in your neighborhood is for sale for $175,000. The building has four units, which are rented at$550 per month each. The tenants have long-term leases that expire in 7 years. Maintenance and other expenses for care and upkeep are 198,000 after 7 years. What is the internal rate of return for this investment?
Solution
VerifiedAnswered 1 year ago
Answered 1 year ago
Step 1
1 of 7Given:
- Initial cost :
- Annual Payments received :
- Annual Expenses :
- Salvage Value :
- Number of years: years
Required:
- Internal rate of return
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