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A real estate investor likes to flip houses. That is, he likes to buy a house at a low price and then flip or sell
A real estate investor likes to flip houses. That is, he likes to buy a house at a low price and then flip or sell the house for a higher price. The investor is looking at a foreclosed house that will cost $238,052.00 today. He will invest an additional $45,054.00 in the first year of owning the house to upgrade its features. He then believes he can sell the house for $407,850.00 at the end of the second year. What is the NPV of this investment if our investor wants to earn a 17.00% annual return on the house
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