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Greedy renral is considering the purchase of an apartment complex. The initial cost for the purchase is $ 8 0 million. The projects subsequent cash
Greedy renral is considering the purchase of an apartment complex. The initial cost for the purchase is $ million. The projects subsequent cash flows are critically dependent in the enrollment of a local university. If the university's rankings rises next year, the enrollment will rise, the subsequent cash flows will be $ million at the end of each of the next years. If the university's ranking does not rise next year, the enrollment will fall and the subsequent cash flows will be only $ million at the end of each of the next years. There us a chance the rankings will rise. Greedy Rental will know for sure one year from today whether the university's rankings has risen or not.
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