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13. You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0 ), and it will

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13. You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0 ), and it will cost you $700,000 in one year (time 1 ). They forecast you can sell the building for $2,400,000 in two years (time 2). If your discount rate is i= 5%, what is the net present value of this investment? 14. You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0 ), and it will cost you $700,000 in one year (time 1). They forecast you can sell the building for $2,400,000 in two years (time 2). If your discount rate is i= 11%, what is the internal rate of return for this investment? 15. You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0 ), and it will cost you $700,000 in one year (time 1 ). They forecast you can sell the building for $2,400,000 in two years (time 2). If your discount rate is i= 63% should you invest in this building? Write 0 for no, and write 1 for yes. 13. You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0 ), and it will cost you $700,000 in one year (time 1 ). They forecast you can sell the building for $2,400,000 in two years (time 2). If your discount rate is i= 5%, what is the net present value of this investment? 14. You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0 ), and it will cost you $700,000 in one year (time 1). They forecast you can sell the building for $2,400,000 in two years (time 2). If your discount rate is i= 11%, what is the internal rate of return for this investment? 15. You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0 ), and it will cost you $700,000 in one year (time 1 ). They forecast you can sell the building for $2,400,000 in two years (time 2). If your discount rate is i= 63% should you invest in this building? Write 0 for no, and write 1 for yes

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