• Your investment group has decided to buy a distressed property for $175,000. Acquisition costs are estimated at $12,244, and one years worth of debt payments, property taxes and insurance total $17,586. Extensive renovations of $24,000 will be completed within the 12 month holding period.

Your group requires a 20% rate of return on their investment. At what price must the house sell in 12 months to generate a 20% return to the investors

A, $214,055

B. $193,557

C. $246,312

D. $239,748