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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
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 $ today. He will invest an additional $ in the first year of owning the house to upgrade its features. He then believes he can sell the house for $ at the end of the second year.
What is the NPV of this investment if our investor wants to earn a annual return on the house?
Answer format: Currency: Round to: decimal places.
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