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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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