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Please help with the following: What is the NPV when IRR = WACC, IRR>WACC, and IRR
Please help with the following:
- What is the NPV when IRR = WACC, IRR>WACC, and IRR
- There is a duplex for sale in Absecon for $700,000 at this time.It has 2 units that generate a total of $25,000 in gross rent.The property taxes are $4,000, commercial property insurance is $2,000, flood insurance is $1,000, and annual maintenance is $2,000.You expect to sell it in one year at a price growth of 0%.What is the NPV with a WACC of 10%.Is the IRR greater or less than the WACC? Would you invest in this project and why?
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
