final answer

Home A property costs $1,200,000 depreciated over 15 years. 80% will be borrowed at 6.5% annual interest, paid in 10 years. Payment are made quarterly, the expected property cash flows are: $120,000, $140,000 and $1,860,000. At the end of the 3rd year, loan outstanding should be repaid. If the WACC is 16%, what is the net present value? a. -$615,298 b. $615,298 c. -$61,529 Od $61,529