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Your employer, Kent, LLC, is considering an investment in an office building that has the following cash flows: Purchase in Year 0: $-2,750,000 Year 1:
Your employer, Kent, LLC, is considering an investment in an office building that has the following cash flows: Purchase in Year 0: $-2,750,000 Year 1: 180,000 Year 2: 276,000 Year 3: 220,000 Year 4: 239,000 Year 5: 250,000 and a sale @ $3,190,000 takes place EOY 5 The company's weighted average cost of capital that they use as their discount rate for such calculations is 7%
using the company's hurdle rate (discount rate) for leveraged projects of 11%, what is the leverage NPV of the project? $467,694 $893,210 $591,450 $953,378
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