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A young couple just had their first baby and is looking for additional income. They are considering renting out the space above their garage as
A young couple just had their first baby and is looking for additional income. They are considering renting out the space above their garage as an apartment. To convert the space, the couple will have to invest $30,000.00 today. It will take one year before they can begin renting the space. Lets suppose that they can rent the apartment for $730.00 per month for 10.00 years. (first payment will be in one year, annuity due). The couple would like to earn 6.00% APR on this investment. What is the NPV of this opportunity? Submit Answer format: Currency: Round to: 2 decimal places.
A young couple just had their first baby and is looking for additional income. They are considering renting out the space above their garage as an apartment. To convert the space, the couple will have to invest $30,000.00 today. It will take one year before they can begin renting the space. Lets suppose that they can rent the apartment for $730.00 per month for 10.00 years. (first payment will be in one year, annuity due). The couple would like to earn 6.00% APR on this investment. What is the NPV of this opportunity?
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Answer format: Currency: Round to: 2 decimal places.
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
978-1305637108
