BECE Developments is considering purchasing a small commerclal 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. The company plans to keep the building for $6$ years and estimates they will be able to sell the building for $25\%$ more than the original purchase price. BECE wants to earn at least $20\%.$ Assume expenses occur at the beginning of the year and revenue at the end of the year.

What is the NPV$?$ Should BECE inven?

NPVY$=-$$$124,530\mathrm{.}61,$ No$,$ not irvest

NPV $=-$$$124\mathrm{.}530\mathrm{.}61,$ Yes, invest

NPV $=$$$975,000.$ No$,$ not imvest

NPY $=$$$975,000,$ yes, invest