Question
PLEASE ANSWER ALL PARTS Questions 31-40 are four (4) points each. Your employer, Kent, LLC, is considering an investment in an office building that has
PLEASE ANSWER ALL PARTS
Questions 31-40 are four (4) points each. Your employer, Kent, LLC, is considering an investment in an office building that has the following cash flows:
Purchase in Year 0 $ -2,750,000
Year 1. 180,000
Year 2.. 276,000
Year 3.. 220,000
Year 4 239,000
Year 5 250,000, and a sale @ $3,190,000 takes place EOY 5
The companys weighted average cost of capital that they use as their discount rate for such calculations is 7%
31. What is the projects IRR?
a. 15.11%
b. 10.96%
c. 10.38%
d. 16.12%
32. For Kent, LLC what is the NPV?
a. $344,814
b. $-168,158
c. $473,883
d. $490,401
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