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You can buy property today for ( $ 3 . 7 ) million and sell it in 6 years for (
You can buy property today for $ million and sell it in years for $ million. You earn no rental income on the property.
a If the interest rate is what is the present value of the sales price? Do not round intermediate calculations. Enter your answer in millions rounded to decimal places.
b Is the property investment attractive to you?
c What is the present value of the future cash flows, if you also could earn $ per year rent on the property? The rent is paid at the end of each year. Do not round intermediate calculations. Enter your answer in millions rounded to decimal places.
c Is the property investment attractive to you now?
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