Question
You are looking at a real estate investment with the projected cash flows below. Your required rate of return is 20% on this investment. Calculate
You are looking at a real estate investment with the projected cash flows below. Your required rate of return is 20% on this investment.
Calculate the NPV and IRR and decide whether or not to invest.
Year
1 -$20,000,000
2 1,000,000
3 1,200,000
4 1,900,000
5 32,500,000
NPV =
IRR =
Should you invest? Why or why not?
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Financial Accounting Essentials You Always Wanted To Know Self Learning Management Series
Authors: Vibrant Publishers , Kalpesh Ashar
5th Edition
1636510973, 978-1636510972
