question archive A property is bought for $900,000 with no debt
A property is bought for $900,000 with no debt
Subject:BusinessPrice: Bought3
A property is bought for $900,000 with no debt. The annual cash flows for the property are $30,000 in year 1 and they grow by 5% per year. If the property is sold for $1,090,000 at the end of the 5th year, what is the NPV on the investment if the discount rate is 9%?
Group of answer choices
-112,101
1,109
-63,696
-58,437
-122,190
