Question
You made an initial investment in a property with a $200,000 equity investment and borrowed the rest. The cash flows (after debt service) from the
You made an initial investment in a property with a $200,000 equity investment and borrowed the rest. The cash flows (after debt service) from the investment for the next four years were; $25,000, $35,000, $45,000 and $50,000, respectively, and the net proceeds from the property sale (in year 4) was $240,000. What was your Net Present Value for the investment using a discount rate 12%? Ignore taxes for this question and focus on just cash flows given."
| "a. $34,778" | ||
| "b. $66,554" | ||
| "c. $50,212" | ||
| "d. ($85,971) negative NPV" |
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Commodity Finance
Authors: Weixin Huang
2nd Edition
0857196650, 978-0857196651
