Valuation fundamentals Personalmance Problem imagine that you are trying to evaluate the economics of purchasing a condominium to live in during college rather than renting an appartment you buy the condo, during each of the next 4 years you w e to pay property taxes and maintenance expenditures of about $5,000 per year, but you will avond paying rent of $10,000 per year. When you graduale 4 years from now you expect to set the condo for 5124,000 aher taxes. If you buy the condo, you will use money you have saved that is currently tested and eaming a 4% annual aner-tax rate of retum. Assume for simplicity that all cash flows (rent, maintenance, etc.) would occur at the end of each year a. Draw a timeline showing the cash flows, their timing, and the required return applicable lo valuing the condo b. What is the maximum pnce you would be willing to pay to acqure the condo? Expl Oc.01 2 124,000 5,000 5,000 5,000 5,000 OD 0 1 2 3 4 7 5,000 5,000 5,000 5,000 124.000 D. The maximum price you would be willing to pay to acquire the condo is (Round to the nearest cent.) Click to select your answer(s)