You are considering a safe investment opportunity that requires a $710 investment today, and will pay $750 two years from now and another $990 five years from now. 1) a. What is the IRR of this investment? b. If you are choosing between this investment and putting your money in a safe bank account that pays an EAR of per year for any horizon, can you make the decision by simply comparing this EAR with the IRR of the investment? Explain. a. What is the IRR of this investment? The IRR of thia investment le C%. (Round to two aealmal places.) b. If you are choosing between this investment and putting your money in a safe bank aocount that paya an EAR of 5% per year for any horizon, can you make the docision by simply comparing this EAR with the IRR of the invostment? Explain. (Select the beat choice below.) O A. No, because the timing of the cash lows are different. B. Yes, you can always compare IRRS of riskless projects, and an invesiment in the bank is riskless. OC. Yes, because the EAR Is the same at all horizona, Bo the two "projecta" have the aame riakiness, scale and timing. O D. No, this is like comparing the IRRa of two projects.

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Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.