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Green Hills Properties is evaluating a real estate investment of West Ranch Estates. Management plans to buy the property tod

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Answer #1

Let irr be x%
At irr,present value of inflows=present value of outflows.

15=35/1.0x^6

1.0x^6=(35/15)

1.0x=(35/15)^(1/6)

x=1.1517-1

x=irr=15.17(Approx)

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