You are considering an imvestment opporfunily in Santa Clara, CA You projoct the Nol for Fis prosenty to be $500,000 in the first yoar (annual, in arrears), and expect the Not to go up by 2% por your findefinith). The appropriate property discount rate is 6%. There is an existing (assumablo) ban on the properfy, with contant MONTHL.Y payments of $80,000 for 120 months ( 10 years). The ban wil be fley anortied at the end of year to Current yield (MEY) on such bans is 5% The celler gives you the ogtion of buying the propenty with or without assuming the foan it will be a fevered investmert \& you buy the property and assume the laan it will be an unlevered investment if you buy the property without assuming the loan. The asking price for the equity investruent (conditional on the buyer assuming the loan) is S48 million. If you dont aseume the loan, the seller is wiling lo sel the property for $12.4 milion. Which of the following is the best course of actoon? A Both the loverod and unlevered imvestment have postive NPV Levered imvestrment has hagher FEV, Derefore buy the equity postion (buy property and atsume deted? B. The unievored investment has posbive NPV, but the levered investment has negative NPV. Buy the propenty. but dont assume debt. C. Both the levered and unlevered investment have negabve NWV Do not buy this property D. The unlovered investment has negative NPV, but the levered imestment has postive NPV Therefore buy the equity position fouy property and assume deti) C. You dont have enough information to calculate and compare the NPVi of these scenarios