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Wislon Enterprises is considering remodeling a building which they own. The remodeling costs are estimated at $1.42 million. The building contains 75 rentals units. Mr.
Wislon Enterprises is considering remodeling a building which they own. The remodeling costs are estimated at $1.42 million. The building contains 75 rentals units. Mr. Wislon will increase the rent on each unit such that his total rental income increases by $400,000 a year for the next 5 years. At a discount rate of 14 percent, what is the benefit of the remodeling project to Wislon Enterprises?
a. | $22,141.41 | |
b. | -$46,767.61 | |
c. | -$49,922.17 | |
d. | -$78,509.12 | |
e. | -$68,824.92 |
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