PUT ANSWER IN TWO DECIMAL PLACES

20. You can invest in one of four investments listed below. You cannot invest in all. If your cost of capital is 6%, which one should you invest in Investment A- A small apartment complex. This complex has 70 units and has an asking price of $6,000.000. You expect a net Income of $12,000 per month for 12 months. In months 13, 14, and 15 you plan to make capital improvements that will result in a net income of - $200,000 each month. After that, you expect to cam $30.000 until the end of year 5 when you expect to sell the property for $8.000.000, Investment B - A small office building. This building has an asking price of $5,000,000. If you purchase it you will have to make repairs and upgrades for the first two months, which will result in net cash flows of $250,000 and - 5400.000 respectively. In month 3 you will have a net revenue of $30,0000, 535,000 in month 4, and then in 40,000 each month until you expect to sell the building for $5.500.000 at the end of year 6 month 72) Investment - A Medical Center. This center has a single tenant and has an asking price of $5.500.000. You expectat Income of $32,000 per month for 2 years after which the lease will expire. You expect you will have to offer 3 months of tree rent to the next tent then $48.000 a month until the end of year 7 when you expect to sell the property for 55,200.000 Investment - Fuen Land. The real estate contains prime famland with an asking price of $4,000,000. The land is rented by the ce and has never had unleased space in its 100 years of operation. You expect a net income of $20.000 per month for lears Anetthat, you expect to the property for $5.200.000 A ment complex