Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alisha is considering buying a house while she is at University. She plans to live in the house and also rent to her friends. The

Alisha is considering buying a house while she is at University. She plans to live in the house and also rent to her friends. The house will cost $300000 to purchase and it has 4 bedrooms (3 she can rent). She will pay cash for the house! She estimates that she can earn $32000 per year in rental income. She estimates that her expenses will be $16000 per year. At the end of 4-years she estimates that she will be able to sell the house for $580000. If she uses a MARR of 4% compounded monthly, what is the present worth of her investment plan?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Finance

Authors: Alan Parkinson

1st Edition

0750618264, 978-0750618267

More Books

Students also viewed these Finance questions

Question

What courses do your students assist with teaching this semester?

Answered: 1 week ago