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The office building your company is considering acquiring has an acquisition price of $1,350,000 and your company only buys all-cash. If net cash flows are
- The office building your company is considering acquiring has an acquisition price of $1,350,000 and your company only buys all-cash. If net cash flows are Yr. 1 and 2 = $185,000 then Yrs. 3,4 and 5 are $205,000 and your company thinks they can sell the building at the end of Yr 5 at $1,500,000, what is the NPV of this deal if your company uses a 8% discount rate?
- $404,156
- $663,507
- $453,715
- $331,846
- $404,156
- $663,507
- $453,715
- $331,846
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