Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Your real estate agent has found a great apartment investment. The apartment will cost $40...

Your real estate agent has found a great apartment investment. The apartment will cost $400,000 to purchase. The forecast is for 3 years of after-tax ash flow

Your real estate agent has found a great apartment investment. The apartment will cost $400,000 to purchase. The forecast is for 3 years of after-tax ash flow: [1] $120,000; [2] $180.000; [3] $300,000. Using a discount rate of 17.5% is this proposed project a good investment?

   

Yes; the NPV = $64,172

   

Yes, the NPV = $17,434

   

No; the NPV = $18,324

   

No; the NPV = 0

   

No; the NPV = -$24,718.14

Jun 14 2021 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions