User Account

All Pages

What is the irr for this investment

Assignment Help Accounting Basics
Reference no: EM133065046

Question - We have owned a net lease investment for 7 years. We acquired it for $890,000.

Cash flows are as follows:

Years 1-2: $80,500

Years 3-4: $84,000

Years 5-6: $87,500

Years 7-8: $91,000

You believe you can re-sell the property based on a7% terminal cap rate. What is the IRR for this investment?

Reference no: EM133065046

Questions Cloud

What would be the wacc of the company : What would be the WACC of the company if Potenziale used a capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt
Find the effective monthly interest rate : You have a credit card debt which is attracting interest at 18:5% per annum (APR) with monthly compounding. The bank has told you that if you pay $328:37 per mo
What is the lowest amount : Given that Michael is a beta-delta utility maximizer with 6 = 0.7 and B = 0.9 and U(y)=y/3, what is the lowest amount (i.e., y) that Jesse needs to offer him in
Internal and external threats : What are some methods that AGC can use to protect the organization from these internal and external threats?
What is the irr for this investment : We have owned a net lease investment for 7 years. We acquired it for $890,000. What is the IRR for this investment
Adviise on changing the price of coffee : Suppose your friend owns a coffee shop and seeks your adviise on changing the price of coffee to increase revenue if you demand for coffee is relatively elastic
Advance the interest of the society : Adam Smith: The Invisible Hand [The rich] consume little more than the poor, and in spite of their natural selfishness and rapacity...they divide with the poor
Advantages and disadvantages of the monetary strategy : What are the key advantages and disadvantages of the monetary strategy used at the Federal Reserve under Alan Greenspan and Ben Bernanke in which the nominal an
Discuss the impact of covid : Discuss the impact of COVID on the unemployment rate in the accomadation and food industry

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd