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SOLVE THIS QUESTION WITH ALL STEPS AND CALCULATION The Basics of Capital Budgeting QUESTION: Flat 1 down payment = 200000 Flat 2 down payment =

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SOLVE THIS QUESTION WITH ALL STEPS AND CALCULATION

The Basics of Capital Budgeting QUESTION: Flat 1 down payment = 200000 Flat 2 down payment = 250000 Number of installments = 5 years Flat 1 per month = 25000 Flat 2 per month = 20000 Payment semi-annual payment Flat 1=60000 Flat 2=55000 At time of the possession Flat 1 should pay 200000 & Flat 2 should pay 300000.At end of 5th sold 4000000 and Flat 2 sold 4000000 year Flat 1 a) Calculate NPV of Flat 1 & Flat 2 according to the builder's payment plan b) Calculate NPV of Flat 1 & Flat 2 by your own per month plan (k=12%) The Basics of Capital Budgeting QUESTION: Flat 1 down payment = 200000 Flat 2 down payment = 250000 Number of installments = 5 years Flat 1 per month = 25000 Flat 2 per month = 20000 Payment semi-annual payment Flat 1=60000 Flat 2=55000 At time of the possession Flat 1 should pay 200000 & Flat 2 should pay 300000.At end of 5th year Flat 1 sold 400000 and Flat 2 sold 400000 a) Calculate NPV of Flat 1 & Flat 2 according to the builder's payment plan b) Calculate NPV of Flat 1 & Flat 2 by your own per month plan (k=12%) The Basics of Capital Budgeting QUESTION: Flat 1 down payment = 200000 Flat 2 down payment = 250000 Number of installments = 5 years Flat 1 per month = 25000 Flat 2 per month = 20000 Payment semi-annual payment Flat 1=60000 Flat 2=55000 At time of the possession Flat 1 should pay 200000 & Flat 2 should pay 300000.At end of 5th sold 4000000 and Flat 2 sold 4000000 year Flat 1 a) Calculate NPV of Flat 1 & Flat 2 according to the builder's payment plan b) Calculate NPV of Flat 1 & Flat 2 by your own per month plan (k=12%) The Basics of Capital Budgeting QUESTION: Flat 1 down payment = 200000 Flat 2 down payment = 250000 Number of installments = 5 years Flat 1 per month = 25000 Flat 2 per month = 20000 Payment semi-annual payment Flat 1=60000 Flat 2=55000 At time of the possession Flat 1 should pay 200000 & Flat 2 should pay 300000.At end of 5th year Flat 1 sold 400000 and Flat 2 sold 400000 a) Calculate NPV of Flat 1 & Flat 2 according to the builder's payment plan b) Calculate NPV of Flat 1 & Flat 2 by your own per month plan (k=12%)

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