Let's say this example from real life... Someone wants to buy an appartment for renting it.
12 months for 300 Euros make for the fellow 3600 Euros a year He must invest 150000 Euros.( The 80000 from bank payable for a duration of 25 years at most )
Well, how can this real life problem be solved to see the IRR or NPV of this project? In most of books I have read the examples are much more...teaching theories and I can not intermix them with this practical real life example... What I say for my own ( putting aside the loan ) is for the IRR at least, that 150000/(25*3600) but is this correct? PV would be again 150000/(1+r) what r?
What about when we would have to calculate the loan too? the lazy 80 grand?
Thank you, in advance!