question archive Information An investor buys a building for $450,000 cash and leases it for payments of: Year 1 - $75,000 Year 2 - $85,000 Year 3 - $90,000 Year 4 - $90,000 At the end of Year 4, the building will be sold for $515,000 in net sales proceeds
Information An investor buys a building for $450,000 cash and leases it for payments of: Year 1 - $75,000 Year 2 - $85,000 Year 3 - $90,000 Year 4 - $90,000 At the end of Year 4, the building will be sold for $515,000 in net sales proceeds
Subject:AccountingPrice: Bought3
Information
An investor buys a building for $450,000 cash and leases it for payments of:
Year 1 - $75,000
Year 2 - $85,000
Year 3 - $90,000
Year 4 - $90,000
At the end of Year 4, the building will be sold for $515,000 in net sales proceeds. Similar investments yield a 15% return.
Questions
1.What is the Net Present Value (NPV)?
2.What is the Internal Rate of Return (IRR)?
