BECE Developments is considering purchasing a small commercial building located in Prince George that will cost $800,000 and will require $125,000 in renovations immediately. Revenue from rent is estimated to be $200,000 a year.Expenses are estimated to be $50,000 a year.They planto keep the building for 6 years and estimates they will be able to sell the building for $1,000,000.Assume expenses occur at the beginning of the year and revenue at the end of the year.Their accountant tells BECE that a MARR of 18% is more appropriate.BECEhas calculated the NPV of this project now is -$61,406.50.

How much of the purchase pricewould BECE need toreduceto make it worthwhile for them to purchase the commercial building if they want to earn a minimum of 18% per year?

Question options:

$738,593.50

$788,593.50

$861,406.50

$61,406.50

-$61,406.50