10-Apr-02			SampleIRR2	Drive P Folder Irr
Sample IRR for an Owner Occupied House-- 5% down payment
Your new home costs:				$150,000
Your downpayment must be:				5.00%
Your equity (downpayment) is:				$7,500
Your First Mortgage is:				$142,500
Your interest rate is:				6%
Your amortization period is:				20	years
Your imputed rent is:				$1,200	per month
Your mortgage cost is:				($12,423.80)	per year
Your net imputed rent is:				$1,976.20	per year
The annual inflation rate in housing is:				1.50%
You sell your home after five years for:				$161,592.60
Principal paid on your mortgage is:
		Year 1		($3,873.80)
		Year 2		($4,106.23)
		Year 3		($4,352.60)
		Year 4		($4,613.76)
		Year 5		($4,890.58)
		Total		($21,836.97)
Principal remaining after five years				$120,663.03
Your cashflow profile is:
		Year 0		-7500	1
		Year 1		$1,976.20	1.5642
		Year 2		$1,976.20	2.446645
		Year 3		$1,976.20	3.826983
		Year 4		$1,976.20	5.986073
		Year 5		$42,905.77	9.36327
		Net cash gain		$  43,310.57
		Total cash returned		$  50,810.57
Your equity IRR is:				56.4%	$0.00	check
Five projects like this, your cash returned in 5 years is:				$254,052.85
Project IRR is
		Year 0		-150000
		Year 1		$14,400.00
		Year 2		$14,400.00
		Year 3		$14,400.00
		Year 4		$14,400.00
		Year 5		$175,992.60
		Net cash gain		$  83,592.60
		Total cash returned		$233,592.60
Your project IRR is:				10.8%
The IRR on the project is made up of the 'weighted average' IRR on your equity (56.4%) plus the IRR
on your debt (6%).