Author Question: Net Present Value of a DecisionYou are considering buying an old house for $250,000 and plan to ... (Read 109 times)

Rafic Kaaki · **on:** Nov 23, 2022

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

my33251 · **Reply #1 on:** Nov 23, 2022

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