Question: 1: chapter 5 kt: chapter 5 You can buy property today for $3.7 million and sellit in 6 years for $47 milion.(You earn no rental

1: chapter 5 kt: chapter 5 You can buy property today for $3.7 million and sellit in 6 years for $47 milion.(You earn no rental income on the property) a. I the interest rate is 6%, what is the present value of the sales price? Do not re nd intermediate cala lations. Enter yos answer in millions rounded to 3 decimal places) b. Is the property investment attractive to you? Yes e-t. What is the present value of the future cash flows, at the end of each year. (Do not r if you also could earn $270000 per year rent on the property? The rent is paid ound intermediate calculations. Enter your answer in millions rounded to decimal places) Present value c-2. Is the property investment attractive to you now? C Prev 12 of 12 B 2

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