Benefit of remodeling project to professional properties

Assignment Help Financial Management

Reference no: EM131327855

Professional Properties is considering remodeling the office building it leases to Heartland Insurance. The remodeling costs are estimated at $2.8 million. If the building is remodeled, Heartland Insurance has agreed to pay an additional $820,000 a year in rent for the next five years. The discount rate is 12.5 percent. What is the benefit of the remodeling project to Professional Properties? $105,214.70 $108,399.15 -$89,072.00 -$111,417.03 $119,666.04

Reference no: EM131327855

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