Your real estate group has narrowed down investment property to two locations. The return you need is 14%. After market

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answerhappygod
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Your real estate group has narrowed down investment property to two locations. The return you need is 14%. After market

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Your real estate group has narrowed down investment property to
two locations. The return you need is 14%. After market analysts
has researched market rents for comparable properties, calculate
NPV and IRR for both properties. Which of the two properties would
you chose? Property 1 Property 2 Year Cash Flow Year Cash Flow 0
-$1,000,000 0 -$975,000 1 250,000 1 -50,000 2 400,000 2 750,000 3
700,000 3 675,000 A. Property 1. NPV = $18,492 IRR = 14.79% B.
Property 2 NPV = $13,847 IRR = 14.64% C. Property 2 NPV = $9,304
IRR = 14.53% D. Property 1 NPV = $13,847 IRR = 14.64%
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