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Unit 5: Your real estate agent has found abusiness investment.Thebusiness will cost $400,000 to purchase.The forecast is for 3 years of after-tax ash flow: [1]
Unit 5: Your real estate agent has found abusiness investment.Thebusiness will cost $400,000 to purchase.The forecast is for 3 years of after-tax ash flow: [1] $120,000; [2] $180.000; [3] $300,000.Using a discount rate of 17.5% is this proposed businessa good investment?
Yes; the NPV = $200,000
Yes, the NPV = $17,434
Yes; the NPV = 0
No; the NPV = - $200,000
No; the NPV = -$24,718
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