You can buy property today for $2.8 million and sell it in 4 years for $3.8 million. (You earn no rental income on the property.)

a.	If the interest rate is 11%, what is the present value of the sales price?(Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.)

Present value

$million

b.	Is the property investment attractive to you?
	Yes No

(Please show all steps)

c-1.	What is the present value of the future cash flows, if you also could earn $180,000 per year rent on the property? The rent is paid at the end of each year.