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Option 2-Invest in real estate. The finance manager has suggested 4 divisible investments with a useful life of 5 years. The company shall keep the
Option 2-Invest in real estate. The finance manager has suggested 4 divisible investments with a useful life of 5 years. The company shall keep the investment for not more than 4 years as per company Investment policy and depreciation is charged at straight-line base. The financial forecasts for the 4 investments are as follows sn Investment initial capital Annual profitTax rate Salvage Required rate Before tax (Including value in of return the end of 4" year Residential 100,000,000 20.000.000 20% 40,000,000 12% house Garage 80,000,000 15.000.000 12% 32.000.000 1036 Supermarket 95.000.000 12.000.000 15% 38,000,000 85 Gas station 50,000,000 10.000.000 20,000,000 73 capital gain) Reguind + Asses the peacebibity of Investment
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