You?re considering developing an industrial building and holding it as an investment for 5 years. You estimate
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Question:
You?re considering developing an industrial building and holding it as an investment for 5 years. You estimate the total development costs to be $850,000. Annual cash flow is as follows:
At the end of the 5 th year you plan to sell the building for $10%.
1. What is the Net Present Value (NPV)?
2. Based on the NPV rule, is this a good investment?
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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