You're spent $10000 searching for an investment property. Now,you're considering investing in a cottage near Brighton Beach. You can buy the house for $300000 with cash, earn $12000 per year in rent and pay $8000 per year in HOA, taxes and other expenses. Assume you'll be able to sell the house in ten years for $400000. Calculate in Excel the NVP ( assume a reasonable discount rate) and IRR of this investment.

2) Now, assume that you must spend $100000 in year 10 to raise the house on stilts due to sea level rise from a warming planet. What are the NVP and IRR in this scenario?

3) Is the cottage still a good investment? Why?

4) Proofread your work for completeness, spices, spelling, grammar, punctuation and professionalism before pressing "Submit ".