A company is deciding constructing an office block. The cost of  land and construction cost is estimated to be $700,000. The real estate agent projects that due to shortage in office space, you can sell it by $800,000 in one year time.

What is the rate of return?
If you can borrow the investment amount with the interest rate of 7%, calculate NPV of the project.

Answer rating: 100% (QA)

To calculate the rate of return and the Net Present Value NPV of the project we will consider the in... View the full answer