Intro An office building will be worth $15 million in 2 years if the economy booms (probability of 80%) and $5 million otherwise. The appropriate annualized cost of capital for such a building is 7%. The office building costs $7 million to build today and can be financed with equity or a bank loan. Assume risk neutrality. - Attempt 1/3 for 10 pts. Part 1 What is the present value of the office building (in $ million)? 1+ decimals Submit - Attempt 1/3 for 10 pts. Part 2 What is the annualized promised rate of return for the loan? 3+ decimals Submit Part 3 Attempt 1/3 for 10 pts. What is the expected value of the levered equity in 2 years (in $ million)? 2+ decimals Submit Intro An office building will be worth $15 million in 2 years if the economy booms (probability of 80%) and $5 million otherwise. The appropriate annualized cost of capital for such a building is 7%. The office building costs $7 million to build today and can be financed with equity or a bank loan. Assume risk neutrality. - Attempt 1/3 for 10 pts. Part 1 What is the present value of the office building (in $ million)? 1+ decimals Submit - Attempt 1/3 for 10 pts. Part 2 What is the annualized promised rate of return for the loan? 3+ decimals Submit Part 3 Attempt 1/3 for 10 pts. What is the expected value of the levered equity in 2 years (in $ million)? 2+ decimals Submit