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1. Your employer, Kent, LLC, is considering an investment in an office building that has the following cash flows: Purchase in Year 0 $ -2,750,000
1. Your employer, Kent, LLC, is considering an investment in an office building that has the following cash flows: Purchase in Year 0 $ -2,750,000 Year 1. 180,000 Year 2.. 276 Year 3.. 220,000 Year 4 239,000 Year 5 250,000, and a sale @ $3,190,000 takes place EOY 5 The companys weighted average cost of capital that they use as their discount rate for such calculations is 7% What would be the total cash flows in Year 5, taking into consideration the cash flows, annual debt service, sale price, and the balance on the loan at the EOY 5?
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