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Author Question: Net Present Value of a DecisionYou are considering buying an old house for $250,000 and plan to ... (Read 44 times)

Rafic Kaaki

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Net Present Value of a Decision

You are considering buying an old house for $250,000 and plan to spend $17,000 to fix it up so you can rent rooms to students at a local college. It will generate an income (rent paid by students) of $38,000 right now and another $38,000 in one year. Two years from now, you plan to sell the building and expect it will sell for $470,000. What is the net present value of this apartment if the interest rate is 7 percent?
Please round your final answer to two decimal places.
◦ $234,030.22
◦ $313,000.00
◦ $217,030.22
◦ $279,000.00


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Marked as best answer by Rafic Kaaki on Nov 23, 2022

my33251

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Rafic Kaaki

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Reply 2 on: Nov 23, 2022
Wow, this really help


vickybb89

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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