You can buy property today for $3.4 million and sell it in 6 years for $4.4 million. You earn no rental income on the property.)

a. If the interest rate is %10, what is the present value of the sales price? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.)

b. Is the property investment attractive to you?

c-1. What is the present value of the future cash flows, if you also could earn $240,000 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 3 decimal places.)

c-2. Is the property investment attractive to you now?

a. Present Value ____________ million

b. Is the property investment attractive to you? _________

c-1. Present Value ____________ million

c-2. Is the property investment attractive to you now? ________