Question 2 C... 3) You can buy property today for $12 million and sell it in 6 years for $13 million. a) If the interest rate is 9%, what is the present value of the sales price? b) Would you accept this invest? What is the basis of your investment decision? c) Would your answer to (b) change if you also could earn $200,000 per-year rent on the property? (given that the rent is paid at the end of each year). d) How would your calculation and answer change if you know that the rent is paid at the beginning of each year)? e) If you don't have enough money to buy property, you can make a down (initial) payment of $0.5 million, and pay the remaining amount by taking out a 30-year mortgage. How much is the monthly payment you should make in order this mortgage