Please show all work and thoroughly explain each step -- including how we would calculate return of capital and what the definition of return of capital is (is it the same thing as return on capital, or cash on cash return). Additionally, due to the wording of the question (i.e. $1000 payment at the end of each month), would this be an ordinary annuity? Lastly, since I am using a Ti-Nspire, please include what I would plug into my calculator to solve for the IRR.
A corporation is considering the purchase of an interest in a real estate syndication at a price of $75,000. In return, the syndication promises to pay $1,000 at the end of each month for the next 25 years (300 months). If purchased, what is the expected internal rate of return (IRR), compounded monthly? How much total cash would be received on the investment? How much is profit and how much is return of capital?