What is the internal rate of return for this investment

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Reference no: EM131989246

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An apartment building in your neighbourhood is for sale for $140,000. The building has four units, which are rented at $500 per month each.

The tenants have long-term leases that expire in 5 years. Maintenance and other expenses for care and upkeep are $8000 annually.

A new university is being built in the vicinity and it is expected that the building could be sold for $160,000 after 5 years. What is the internal rate of return for this investment?

Reference no: EM131989246

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