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A bank offers a 30-year annuity with monthly payments of $206 (the first payment comes in 1 month from today). If the discount rate is 3%, compounded monthly, how much should this annuity cost today? Write the answer as a number rounded to two decimals (e.g. if you get $50,66666, write 50.67) Acme is considering developing an office building and selling it in the future. They forecast: At t=0 it will cost them $400,000 to buy the land At t=1 it will cost them $500,000 to develop At t=2 it will cost them $600,000 to develop At t=3 they will sell it for $2,000,000 Each time period is a year. Find the IRR of this project.

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Using a financial calculator or spreadsheet software, we can find that the IRR of the project is approximately 24.9%.
User Daniel Pereira
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