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A project will generate the following cashflows:

Year 0 & Year 1 Cost of purchasing and remodeling an office building $150,000 & $100,000

Rental proceeds of $30,000 every year forever, starting from year 2

The opportunity cost of capital is 10%. What’s the net present value of this project?

$31,818

$7,025

$28,926

$50,000

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92298907

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