Question
Sydney just won $500,000 in the South Carolina lottery! She is considering buying a house, rent it for 25 years, and then sell the house.
Sydney just won $500,000 in the South Carolina lottery! She is considering buying a house, rent it for 25 years, and then sell the house. Her real estate agent believes that she can rent the house for $3,000 per month and that the house will sell for 150% of its current price in 25 years. Assuming annual rate of return is 6%, what is the NPV of this investment?
Round to the nearest dollar and enter your answer without $ sign. Example: enter 54123 for $54,123.32.
i tried 133595 like the other questions and it was incorrect
please use financial calculator
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started