Suppose the price of jills house grows 45 annually compute, Financial Management

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Suppose the price of jills house grows 45 annually compute

Jill buys a house for $800k, lives there for exactly 10 years and sells it. Suppose Jill’s annual cost of ownership is exactly equal to the annual rent she would have paid to live in the same house. Suppose the price of Jill’s house grows 4.5% annually. Compute Jill’s annual IRR from owning net of renting.

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Financial Management: Suppose the price of jills house grows 45 annually compute

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Financial Management: Suppose the price of jills house grows 45 annually compute

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