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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 $244,926.00 today. He will invest an additional $41,475.00 in the first year of owning the house to upgrade its features. He then believes he can sell the house for $408,465.00 at the end of the second year. What is the NPV of this investment if our investor wants to earn a 15.00% annual return on the house? Answer format: Currency: Round to: 2 decimal places
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