What is the present value of the sales price

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You can buy property today for $3.8 million and sell it in 4 years for $4.8 million. (you earn no rental income on the property)

Problem a. if the interest rate is 7%, what is the present value of the sales price? (do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places)

Problem b. is the property investment attractive to you?

Problem c-1. what is the present value of the future cash flows, you could also earn $280,000 per year rent on the property? the rent is paid at the end of the end of each year. (do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places)

Problem c-2. is the property investment attractive to you now?

Reference no: EM132910622

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