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Qhin Mrs. Smith inherited a cabin from her parents plus $100,000 in cash. The cabin needs a complete rem: They rent the cabin out when

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Qhin Mrs. Smith inherited a cabin from her parents plus $100,000 in cash. The cabin needs a complete rem: They rent the cabin out when they are not using it. Rent is collected by a management rm, netted age the Smith's semi annually. The Smiths want to use their inheritance to fund their children's education. | cabin now in its current condition for $50,000 {after taxes} and invest the proceeds and the $100,000 a' the improvements to the cabin and wait to sell it when her children are ready to go to school. She wou the improvements and wait so the family can use the cabin as long as the proceeds from selling the cal investing proceeds. See cash ows below. Calculate the following Net Present Value at 5% Net Present Value at 10% IRR Should she sell it now or later and why? I If she could earn 10% on the investment by selling now what would you recommend? What is the interest rate she would have to earn |:| in order to make it better to sell now

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