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Please show your work in excel! 1. You have invested $100,000 in a badly built house. For $20,000 invested today, you can fix up the
Please show your work in excel!
1. You have invested $100,000 in a badly built house. For $20,000 invested today, you can fix up the house and sell it 1 year from today for $90,000. As an alternative, you can sell the house today for $60,000. a. If the relevant discount rate is 9%, which alternative should you prefer? Make sure that you use the best capital budgeting technique, NPV to evaluate both alternatives. b. What is the discount rate that makes you indifferent between the two alternatives? Use the Goal Seek function. You should set the NPV of "fix and sell" to the NPV of "sell it now" to get the discount rate Step by Step Solution
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