Npv & irr

Well, there are some unanswered data. (1) Rafael's new apartment costs $260,000, but this does not tell me whether the cost of land of $50,000 is included in the above $260,000; (2) Rafael only plans to build another apartment, but it does not tell with in how many months the new apartment would be buildup.

Let us assume that the total cost of new building, inclusive of land, is $260,000 + $50,000 = $310,000. The building is completed TODAY ITSELF & it is sold next year at $355,000, the NPV is $355,000/1.08 - $ $310,000 = $18,703.704 and the IRR is calculated by solving $355,000/(1+r) = $310,000, and r=0.14516129 or 14.52%