If your father wants to invest in a house and give you the following facts. Purchase price SR 1000,000 Annual maintenance: SR 5000 Annual income: SR 50000 Expected sale price after 15 years: SR 900,000 The IRR of the investment is nearest to A. 4% B. 1% C. 8% D. 7%

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A:

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A: Here,

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A: Calculation of the present value of the cash return is shown below:

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