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Calculate the irr for the bank

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Question - Due to a recent decrease in real estate prices, you want to buy a commercial real estate that is priced at KD 15 million. Since you don't have the full amount, you resort to one of the KFH financing schemes. After negotiation, you agree that you contribute KD 5 million while KFH finances KD 10 million. For investment purposes, you both agree to lease the commercial building to a third party at KD 300,000 paid annually. You also agree to payback KFH's money by purchasing its ownership by paying KD 2 million every year. Calculate the IRR for the bank?

Reference no: EM133022215

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