Problem $5-11$ Present Values $($LO$2)$

You can buy a property today for $$2\mathrm{.}6$ million and sell it in $6$ years for $$3\mathrm{.}6$ million. $($You earn no rental income on the property.$)$

a$.$ If the interest rate is $6\%,$ what is the present value of the sales price?

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $3$ decimal places.

b$.$ Is the property investment attractive to you?

c$-1.$ What is the present value of the future cash flows if you also could earn $$160,000$ per$-$year rent on the property? The rent is paid at

the end of each year.

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $3$ decimal places.

c$-2.$ Is the property investment attractive to you now?