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D Question 7 10 pts You own a small office building where tenants have requested some energy efficient improvements that would cost $120,000. This renovation

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D Question 7 10 pts You own a small office building where tenants have requested some energy efficient improvements that would cost $120,000. This renovation would result in an increase in PGI of $4,000 per year, a decrease in operating expenses of $3,000 per year, and an increase in the net selling price of $163,000. You expect to hold the property for another four years. At a discount rate of 14%, does this investment make sense? O no, NPV ($3,095) yes, NPV $4,850 yes, NPV -$13,520 O yes, NPV-$22,995 need more information D | Question 8 10 pts Suppose that your 12,000 SF building was leased for $10 per square foot two years ago on a five-year lease (i.e. three years remaining). Your tenant wants to negotiate a buyout (i.e., get out of the lease) but comparable space is now renting for only $8 per square foot. At what price should you allow the existing tenant to buyout the lease if your discount rate is 6%? $57,644 $59,684 $61,850 $64.152 $66.602

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