What is the npv of this opportunity to your company

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Reference no: EM132023373

Suppose that you own a land development company. You have the opportunity to buy a parcel of property today for $400,000.00. Once you own the property, you will have to invest in infrastructure (sewer lines, electric grid, etc.). This will require another investment in year 1 of $200,000.00. You will then sell the parcel in year 2 for $800,000.00 to builders. If the cost of capital is 10.00%, what is the NPV of this opportunity to your company?

Answer Format: Currency: Round to: 2 decimal places.

Reference no: EM132023373

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