Question
Apartment Cost : $500,000 Useful Life : 10 years Salvage Value: depreciation $800,000 Annual Cash flow (from savings): $22,000, after year 5 it went up
Apartment Cost : $500,000
Useful Life : 10 years
"Salvage Value": depreciation $800,000
Annual Cash flow (from savings): $22,000, after year 5 it went up to $25,000
Discount rate: 8%
In year 5: Paint Cost $10,000
Questions:
1.Should I buy the apartment ?
2. Discuss discount rate at 8%
3.Your opinon about IRR
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Business and Administrative Communication
Authors: Kitty o. locker, Donna s. kienzler
10th edition
77830105, 978-0077830106, 978-0073403182
