3 years ago

Real estate finance:

Business

1 answer:

Andrei [34K]3 years ago

4 0

Answer:

This is a typical true or false statement.

The correct option is true

Explanation:

The IRR is the rate of return where Net Present Value of an investment is zero.

With a IRR of 35%,it implies that a higher discount rate is used in bringing the cash flows to present terms,which means that the cash flows so discounted are worthier than cash flows whose discount rate is just 12%.

In other words, the investment in the building apartment of 35% IRR is preferable to investment of supermarket anchored stri[p shopping center

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