Question: Question 2 A company is deciding constructing an office block. The cost of land and construction cost is estimated to be $700,000. The real estate

Question 2 A company is deciding constructing an office block. The

Question 2 A company is deciding constructing an office block. The cost of land and construction cost is estimated to be $700,000. The real estate agent projects that due to shortage in office space, you can sell it by $800,000 in one year time. (a) What is the rate of return? (b) If you can borrow the investment amount with the interest rate of 7%, calculate NPV of the project

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