crharris392 crharris392

20-12-2022
Business

Answered

you can buy a property today for $3 million and sell it in 5 years for $4 million. (you earn no rental income on the property.) a. if the interest rate is 8%, what is the present value of the sales price? note: do not round intermediate calculations. enter your answer in millions rounded to 3 decimal places.) b. is the property investment attractive to you? c-1. what is the present value of the future cash flows if you also could earn $200,000 per-year rent on the property? the rent is paid at the end of each year. note: do not round intermediate calculations. enter your answer in millions rounded to 3 decimal places. c-2. is the property investment attractive to you now?

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