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CALCULATE IRR MANUALLY The ING Group wants to invest in an industrial property which is...

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Finance

CALCULATE IRR MANUALLY

The ING Group wants to invest in an industrial property which is worth $20,000,000. This property provides an average monthly net rental income (after deducting all the expenses and tax) of $128,000. The holding period of this investment will be 7 years, and the market value of the industrial property is expected to grow by 3% per year. Should ING Group proceed with this investment if their required rate of return is 10%?

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Example-IRR The West Field Group is considering buying a small shopping center for $457,000,000, and the holding period of this property is 6 years. This property provides average monthly rental income of $2,000,000 after all the expenses deducted. If the market value of this property is expected to grow by 5% per year, what is the annual rate of return for this investment? [12] [SHIFT] [P/YR] [SHIFT] [C ALL] [457,000,000] [+/-] [PV] [2,000,000] [PMT] [1] [+] [0.05] [=][SHIFT] [y*] [6] [=] [>] [457,000,000] [=][FV] [6] [x] [12] [=][N] [1/YR] answer : 9.48%

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