QUESTION 7 Your company is wanting to market housing for college students. There are a couple of developments you would like to consider and present to your management. The required return on your investment is 13%. Also, each property's rent growth should be 3% a year to reflect your expectations for inflation. You are considering two different properties listed below: Texas Tech Villages The initial investment in the property is $2,250,000. You have done your research and have forecasted a net monthly rental income of $ 19,000 per month. You intend to hold on to this investment at least three years and at the end of three years and would like to be able to sell the property for 2,500,000. What is the net present value of this investment? Wreck'em Cottages The initial investment in the property is $1,450,000. You expect the net monthly rental income of this property to be of $ 13,500 per month. You intend to hold on to this investment at least four years and at the end of four years to sell at $1,650, 000. What is the net present value of this investment? Year 0 1 2 34 Texas Tech Villages Wreck'em Cottages NPV Which property would you be willing to recommend for purchase? OA. Wreck'em Cottages B. Texas Tech Villages