Business, 15.07.2019 00:00 haidenmoore92

You can buy 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? (do not round intermediate calculations. enter your answer in millions rounded to 3 decimal places.) b. is the property investment attractive to you? yes no 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. (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? yes no

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You can buy property today for $3 million and sell it in 5 years for $4 million. (you earn no rental...

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