Business, 20.09.2020 14:01 greyxxamber

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.) (LO5-2) a. If the interest rate is 8%, what is the present value of the sales price? b. Is the property investment attractive to you? c. Would your answer to part (b) change if you also could earn $200,000 per-year rent on the property? The rent is paid at the end of each year.

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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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