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Please, answer for following questions: Youve spent $10,000 searching for an investment property. Now, youre considering investing in a cottage near Brighton Beach. You can
Please, answer for following questions:
- Youve spent $10,000 searching for an investment property. Now, youre considering investing in a cottage near Brighton Beach. You can buy the house for $300,000 with cash, earn $12,000 per year in rent and pay $8,000 per year in HOA, taxes, and other expenses. Assume youll be able to sell the house in ten years for $400,000. Calculate in Excel the NPV (assume a reasonable discount rate) and IRR of this investment.
- Now, assume that you must spend $100,000 in year 10 to raise the house on stilts due to sea-level rise from a warming planet. What are the NPV and IRR in this scenario?
- Is the cottage still a good investment? Why?
- Please Use Excel and shows all formulas.
Thank you so much!
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Profit First For Dentists Proven Cash Flow Strategies For Financial Freedom
Authors: Barbara Stackhouse, Drew Hinrichs, Mike Michalowicz
1st Edition
1735907804, 978-1735907802
