More Book questions: Real Estate by the Numbers - Dave Meyer, J Scott

More Book questions: Real Estate by the Numbers - Dave Meyer, J Scott

Member since 2023 · 1 post · 0 votes

Chapter 11, "Hone Your Skills" section has this practice question: "What is the IRR of an investment that costs $75,000 up front, earns you $22,000 per year for four years, and then generates $115,000 at sale?" I put this into Google Sheets, and got 31.85%, whereas the book answer is 11.02%. Anyone have an idea of whether this is a mistake in the book or my/Google's calculations? The XIRR() fn works fine in the existing examples from the accompanying spreadsheet. @Dave Meyer FYI

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Investor · Member since 2023 · 118 posts · 61 votes
2y

Change $22,000 to $2,200 and you get 11.01%.  They likely misstated the question.

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  • Member since 2023 · 1 post · 0 votes
    2y

    Glad to see I am not the only one! I am reading this book right now and came to same answer as you did. Would appreciate if someone could step in and say where we went wrong or if there is an error with the books answer. 

  • Member since 2024 · 6 posts · 3 votes
    2y

    Must be a mistake in the book.

  • Rental Property Investor · Virginia Beach, VA · Member since 2020 · 1 post · 0 votes
    2y

    Currently just ran the numbers myself and I am getting 31.85% as well. I would like to know if the 11.02% answer is correct and if so how did they get it lol because like you said the rest of the IRR equations check out in the chapter. I went back to see if I was doing anything wrong and those numbers line up within my excel sheet so really wondering.

  • Investor · Member since 2023 · 118 posts · 61 votes
    2y

    Change $22,000 to $2,200 and you get 11.01%.  They likely misstated the question.

  • New to Real Estate · Milliken, CO · Member since 2018 · 16 posts · 4 votes
    10mo

    I am looking for updated information on the book as it seems like some of the hone your skills answers are not correct. Where can I find that? Thank you

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