You buy a rental property for $180,000. Assuming that you could sell the property for $250,000 at the end of 6 years, what is yo
ur return based on the following cash flows? Year 0 (now) = – 180,000 End of Year 1 = + 24,000 End of Year 2 = + 24,000 End of Year 3 = – 3,000 and +12,000 End of Year 4 = + 18,000 End of Year 5 = + 30,000 End of Year 6 = + 32,000
1 answer:
Answer:
15.542%
Step-by-step explanation:
For uneven cash flows such as those in this problem, there is no formula for "internal rate of return" (IRR). It must be computed graphically or iteratively. Spreadsheets and financial calculators are equipped to do this calculation. Attached is the result of the calculation done by a graphing calculator.
The sum of "present value" of each of the cash flows is zero when the discount rate is the IRR.
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The answer is below
Step-by-step explanation:
Two triangles are said to be congruent if for the two triangles all the three sides are equal and all the three angles are equal to each other.
Given that ΔPQR is congruent to ΔSTU, hence all corresponding sides and corresponding angles are equal to each other.
∠P = ∠S = 59°
∠S + ∠T + ∠U = 180° (sum of angles in a triangle)
59 + 75 + ∠U = 180°
134 + ∠U = 180°
∠U = 46°
∠U = ∠R = 46°
∠Q = ∠T = 75°
Also, for the sides:
ST = PQ = 7 m
SU = PR = 8 m
