You have an opportunity to purchase rental real estate.

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You have an opportunity to purchase rental real estate.

You have an opportunity to purchase rental real estate. Your required return on your investment is 11 %. The initial investment in the property is $325,000. You have done your research and have forecasted a monthly rental income of $ 2,400 per month. You intend to hold on to this investment at least 5 years and at the end of five years hope to sell at $370,000. What is the net present value and internal rate of return of this investment? Is the net present value and internal rate of return in agreement?

-$1, 218, 11.5%, NPV and IRR are not in agreement $2,089,

11.1%, NPV and IRR agrees $1,018, 11.1%,

NPV and IRR agrees $1,018, 10.5%,

NPV and IRR are not in agreement.

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You have an opportunity to purchase rental real estate.