What is the annual worth and internal rate of return

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Will visits Barbados so often that he decides to buy a shop there for $8,000. He plans to keep a residence on the second floor and rent the first floor shop for $60 per month. Besides earning rent, he figures he will also save $1000 per year in lodging bills from the Barbados Inn. If Will has a discount rate of 7%, what is the annual worth and internal rate of return for owning the shop for thirteen years?

Reference no: EM131067066

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