Problem $4-$ Holy Land

June $2019,$ Greek Consulate in Jerusalem. While sipping cocktails with my friend Katerina, the

Greek Counselor in Israel, she shares her future business plan. She wants to use a piece of land

that her father owns and is valued at $$25,000$ in our hometown $($Preveza$)$ to build two luxurious

villas. The total construction cost is $$200,000$ and she can depreciate half of this cost linearly over

the next $10$ years. She plans to rent one villa for $$24,000$ per year and keep the second one so she

can move from the apartment she currently rents for $$1,000/$month$.$ When the $10-$year period ends,

she is confident that she can sell both villas for $$350,000.$ Her income tax rate is flat at $20\%,$ there

are no capital taxes $($e$.$g$.,$ real$-$estate sales$),$ and the required rate of return of the project is $18\%.$

$1.$ Should I advice her to take the project?

$2.$ Got your response! But just to be sure, could you calculate the NPV of the

project?