Michael just received in inheritance an old family apartment valued in the market at 750,000 euros. You are offered the option of either selling the apartment or reforming and renting it under the following conditions: - Cost of the reform: 250,000 dollars, which he has from the inheritance - Square meters available for rent: 350. - Rent price per square meter: 10 dollars per month. - Lease term: 10 years. -Revaluation of the property during the period: 6% per year. The financial entity that Michael works with offers you the option of investing all your money (which you currently have plus that which you would get from the sale) in a 10 year bond with an annual coupon of 3%.

A) Determine and calculate the cash flows corresponding to both alternatives. We understand that the tax effect is the same for the two options. (20 points). B) Calculate the Recovery Time (Payback) of both alternatives. (5 points). C) Calculate the discounted Payback of both alternatives. (5 points). D) Calculate the percentage yield of both alternatives. (5 points) E) Calculate the Net Present Value of both options, knowing that the average profitability of the real estate market is 8%. (10 points) F) Calculate the IRR of both alternatives. (10 points). G) Which option would you choose? Reason your answer (5 points)