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shepuryov [24]
3 years ago
15

Suppose an investor is interested in purchasing the following income producing property at a current market price of $450,000. T

he prospective buyer has estimated the expected cash flows over the next four years to be as follows: Year 1 = $40,000, Year 2 = $45,000, Year 3 = $50,000, Year 4 = $55,000. Assuming that the required rate of return is 12% and the estimated proceeds from selling the property at the end of year four is $500,000, what is the NPV of the project?
Business
1 answer:
Vikki [24]3 years ago
6 0

Answer:

Net Present value of Project is $9,890

Explanation:

Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.

Net Present Value of Property is $9,890

Workings are made in an MS Excel file, which is attached with this answer. please find it.

Download xlsx
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After the Interview The job search doesn't end with the interview. After your interview, be sure to follow up with the appropria
iogann1982 [59]

Answer:

The correct answers are letters "A", "D", and "E": Use a business letter format; Send a separate letter to each interviewer; Mention something you liked about the interview.

Explanation:

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3 years ago
MM Proposition II with taxes: Group of answer choices explains how a firm's WACC increases with the use of financial leverage. r
schepotkina [342]

Answer:

explains how a firm's WACC increases with the use of financial leverage.

Explanation:

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Lena and Joe are two of the partners in a business Lena makes $3 in profits for every $4 that Joe makes if Joe makes $60 profit
melomori [17]
Lena makes $45 profit.

Extra information:

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Rex became a partner with a 30% interest in the partnership profits when he invested $200,000. In 2019, the partnership generate
avanturin [10]

Answer:

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