The ING Group wants to invest in an industrial property which is worth  $20,000,000. This property provides an average monthly net rental income (after deducting all the expenses and tax) of $128,000. The holding period of this investment will be 7 years, and the market value of the industrial property is expected to grow by 3% per year. 

Should ING Group proceed with this investment if their required rate of return is 10%?

Answer rating: 100% (QA)

To determine whether the investment is worth proceeding we need to calculate the net present value N... View the full answer