Your employer, Kent, LLC, is considering an investment in an office building that has the following cash flows: Purchas

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answerhappygod
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Your employer, Kent, LLC, is considering an investment in an office building that has the following cash flows: Purchas

Post by answerhappygod »

Your employer, Kent, LLC, is
considering an investment in an office building that has the
following cash flows:
Purchase in Year 0…………… $
-2,750,000
Year
1………………. 180,000
Year 2………………..
276,000
Year 3………………..
220,000
Year 4…………………
239,000
Year 5 ………………… 250,000,
and a sale @ $3,190,000 takes place EOY 5
The company’s weighted average cost of
capital that they use as their discount rate for such calculations
is 8%
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