IRRNPV Question property, expected, purchase, required, complex

spartan1

The financial manager at Genesis Company is looking into the purchase of an apartment complex for $550,000. Net aftertax cash flows are expected to be $65,000 for each of the next five years, then drop to $50,000 for four years. Genesis’ required rate of return is 9% on projects of this nature. After nine years, Genesis Company expects to sell the property for aftertax proceeds of $300,000. What is the respective internal rate of return (IRR) and net present value (NPV) on this project?
A) 7.01%; ?$53,765.
B) 13.99%; $166,177.
C) 6.66%; ?$64,170.

willsucceed

thanks CP. A is the correct answer.
I put 250 insted of 350 in CF9 and could not understand my results. Now it’s clear.

ayaz_mahmud369

A) 7.01, 53765
CF0=550
CF1CF5=65
CF6CF8=50
CF9=350
I=9%
CPT NPV, CPT IRR