Answer:
Net Present Value (NPV) = $ 115,998
Explanation:
Calculation of the Net Present Value
Net Present Value = Cash Inflows - Cash Outflows
NOI from 6th year = 80,000*115% = 92,000
NPV = 80000 (PVAF, 5 year) + 92,000 (PVAF, (105), 9.5%) + 830,000/(1.095)10 - 750,000
NPV = (80,000 x 3.839) + (92,000 x 2.439) + (830,000 x 0.403) - 750,000
= 307,120 + 224,388 + 334,490 - 750,000
The Net Present Value will be $ 115998