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any help is appreciated! will thumbs up! 5. value: 1.25 points Problem 5-10 Present Values (LO2) You can buy property today for $3.2 million and

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any help is appreciated! will thumbs up!

5. value: 1.25 points Problem 5-10 Present Values (LO2) You can buy property today for $3.2 million and sell it in 4 years for $4.2 million. (You earn no rental income on the property.) a. If the interest rate is 8%, what is the present value of the sales price? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) Present value million b. Is the property investment attractive to you? Yes No C-1. What is the present value of the future cash flows, if you also could earn $220,000 per year rent on the property? The rent is paid at the end of each year. (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) Present value million C-2. Is the property investment attractive to you now? OO Yes No

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