Henry can purchase a piece of land for $45,000 and lease it for a paintball range to net $4,000 a year. If Henry’s opportunity cost/discount rate is 11% and he can sell the land in seven years for % a 60,000 net selling expense, is the land a good investment for henry? Use NPV.

- Use IRR to see if Henry’s investment above is a good one.

- If Henry has to wait 12 years to sell his land for $66,000, is it a good investment?

- Use both IRR and NPV.

Answer rating: 100% (QA)

Initial Cash Outflow 45000 Annual Cash Inflow 4000 Cash inflow at end of Year 7 60000 Opportunity co... View the full answer