Rate of return on real estate investment

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Reference no: EM13769815

Question 1: You purchased a piece of property at $360,000 five years ago. You can sell the property at $450,000. What is the rate of return on this real estate investment?

Question 2: Best Foods forecasts the following cash flows on a special meat packing operation under consideration.

A₀	A₁	A₂	A₃
$15,000	$0	$8,200	$9,500

What is the rate of return on this investment?

Consider four projects with the following sequences of cash flows:

	Project .4	Net Cash Flow Pgⁱn3t^. Project C		Project I)
0	-$25,000	-$23,000	$43,233	-$56.500
1	$11000	$32,000	-$18,000	-$2.500
2	$23,000	$31000	-$18,000	-$6.459
3	$34_000	-$25.000	-$18,000	$88,345

Question 3: Consider the investment project with the following net cash flows

End of year (n)	Net Cash Flow
0	($12,000)
1	$2,000
2	$5,500
3	X
4	X

What would he the value of X if the project's IRR is 25%?

Reference no: EM13769815

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