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Bezie Foster has estimated the annual after-tax cash flows (ATCFs) and after-tax net proceeds from sale (CF_P) of a proposed real estate investment as noted
Bezie Foster has estimated the annual after-tax cash flows (ATCFs) and after-tax net proceeds from sale (CF_P) of a proposed real estate investment as noted below for the planned 4-year ownership period (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet) The initial required investment in the property is $53, 504 Bezie must earn at least 15% on the investment. Calculate the net present value (NPV) of the proposed investment Estimate the yield (to the nearest whole percent) from the investment. From your findings in parts a and b. what recommendation would you give Bezie? Explain The NPV is (Round to the nearest cent) The yield from the investment Is (Round to the nearest whole percent.) From your findings in parts a and b what recommendation would you give Bezie? Explain. (Select the best answer below.) Since the NPV is greater than $0 and the yield is greater than the required return, the investment is acceptable If all other investment considerations of the property meet Bezie's criteria, she should purchase it. Since the NPV is greater than $0 and the yield is greater than the required return, the investment is not acceptable Bezie should not purchase it
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