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Rafael owned an apartment building that burned down. The empty lot is worth $50,000 and Rafael has received $260,000 from the insurance company. Rafael plans

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Rafael owned an apartment building that burned down. The empty lot is worth $50,000 and Rafael has received $260,000 from the insurance company. Rafael plans to build another apartment building that will cost $280,000. His real estate adviser estimates that the expected value of the finished building on the real estate market will be $375,000 next year. The discount/ interest rate is 8%. What are the NPV and IRR of this decision? O $17,222; 13.64% O $67,222; -33.93% You forgot to include the opportunity cost of rebuilding that would have eliminated the option of selling the empty lot. You also got the wrong signs. O $67,222; 33.93% O $17,222; -13.64%

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