# Finance

An income-producing property is priced at \$600,000 and is expected to generatethe following after-tax cash flows: Year 1: \$42,000; Year 2: \$44,000; Year 3:\$45,000; Year 4: \$50,000; and Year 5: \$650,000. Would an investor with arequired after-tax rate of return of 15 percent be wise to invest at the current price? b. No, the NPV is -\$148,867

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1. Also, how would you calculate the IRR? Thank you for any help!

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posted by Francesca

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