You are considering the purchase of a small income-producing property for $150,000 that is expected to produce the following net cash flows:
|
End of Year
|
Cash Flow
|
|
1
|
$50,000
|
|
2
|
$50,000
|
|
3
|
$50,000
|
|
4
|
$50,000
|
Assume your required internal rate of return on similar investments is 11 percent. What is the net present value of this investment opportunity? What is the going-in internal rate of return on this investment?