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Year 0 1 2 3 4 5 Cash Flow $-2,500,000 $425,000 $350,000 $275,000 $225,000 $2,625,000 Your real estate firm is considering the purchase of an
Year | 0 | 1 | 2 | 3 | 4 | 5 |
Cash Flow | $-2,500,000 | $425,000 | $350,000 | $275,000 | $225,000 | $2,625,000 |
Your real estate firm is considering the purchase of an office building. The space in the building will be leased to other companies and the building will be sold at the end of 5 years. Your firms weighted average cost of capital is 9.5%. Given the after-tax cash flows below, and assuming that cash flows are reinvested at the cost of capital, what is the NPV, MIRR, & PI for the project? (Please round your answer to 2 decimal places and do not include the "%" sign in your answer. If your answer is 6.75%, please enter it as 6.75.)
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