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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% Using the companys hurdle rate (discount rate) for leveraged projects of 11.00%, what is the leveraged NPV of the project?
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