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4
Questions 16-17) An investor buys a building for $450,000 cash and leases it for payments of:
Year 1-$75,000
Year 2-$85,000
Year 3-$90,000
Year 4-$90,000
At the end of Year 4, the building will be sold for $515,000 in net sales proceeds. Similar investments yield a 15% return.
What is the Net Present Value (NPV)?
$84,576.78
$75,221.05
$65,812.67
$72,490.37