1) What is the IRR of the following cashflows? 2) What is the NPV at a 15% target yield? 3) How Much can I pay for the property with a 15% target yield? n 0 ($275,000.00) 1 $21,000.00 2 $12,000.00 3 $32,000.00 4 $41,230.00 5 $48,750.00 $51,230.00 6 $291,000.00

1) What is the IRR of the following cashflows? 2) What is the NPV at a 15% target yield? 3) How Much can I pay for the property with a 15% target yield? n 0 ($275,000.00) 1 $21,000.00 2 $12,000.00 3 $32,000.00 4 $41,230.00 5 $48,750.00 $51,230.00 6 $291,000.00

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

1) What is the IRR of the following cashflows?
2) What is the NPV at a 15% target yield?
3) How Much can I pay for the property with a 15% target yield?
n
0
($275,000.00)
1 $21,000.00
2 $12,000.00
3 $32,000.00
4 $41,230.00
5 $48,750.00
$51,230.00
6
$291,000.00

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