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What is the NPV of this renovation project

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Question - You are a commercial real estate agent and expect to renovate a building which you will buy for $760. You will then lease it out to a retail store for 20 years. In the last year, year 20, you will sell the building and expect to sell it for $250. For the 20 years you lease the building, you expect the lease to pay you $110 per year. Finally, the cost of capital in this case is 5%. What is the NPV of this renovation project?

Reference no: EM132909921

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