Question: Capital Budgeting Decisions Exercise (2) Instructor: Dr. Lou Learning Objectives 2. Apply capital budgeting to property investment (a) Develop proforma cash flows for property investment

Capital Budgeting Decisions Exercise (2) Instructor: Dr. Lou Learning Objectives 2. Apply capital budgeting to property investment (a) Develop proforma cash flows for property investment project (b) Compute NPV, IRR (c) Develop Problem-Solving and Critical Thinking Skills 1) buy house in all Cash Or Mortgage; project period = 15 years 2) property value 4) 10 -yr mortgage at 5.5% case 1: Investment Capital Budgeting Decisions Exercise (2) Instructor: Dr. Lou Learning Objectives 2. Apply capital budgeting to property investment (a) Develop proforma cash flows for property investment project (b) Compute NPV, IRR (c) Develop Problem-Solving and Critical Thinking Skills 1) buy house in all Cash Or Mortgage; project period = 15 years 2) property value 4) 10 -yr mortgage at 5.5% case 1: Investment
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