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This is one question with two parts. Questions 32A-32b Your employer, Kent, LLC, is considering an investment in an office building that has the following
This is one question with two parts.
Questions 32A-32b Your employer, Kent, LLC, is considering an investment in an office building that has the following cash flows:
Purchase in Year 0 $ -2,750,000
Year 1. 180,000
Year 2.. 276,000
Year 3.. 220,000
Year 4 239,000
Year 5 250,000, and a sale @ $3,190,000 takes place EOY 5
The companys weighted average cost of capital that they use as their discount rate for such calculations is 8%
32A. What is the projects IRR?
15.11%
10.38%
10.96%
16.12%
32B. For Kent LLC what is the NPV?
$344,814
$-168,158
$37,589
$490,401
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