Question: True or False. You have a great development idea for the property 2372-2374. You are going to build luxury rental apartments and lease the commercial

True or False. You have a great development idea for the property 2372-2374. You are going to build luxury rental apartments and lease the commercial space out to a real estate broker. You will invest in the property if your Net Present Value Calculation is positive. The discount rate you will use is 13%. You can buy the property for $4 million today and sell it for $18,000,000 at the end of 25 years. The NOI of the property will be zero for years 1-3 and will be $650,000 per year for years 4-25. Your investment rule is to make the investment if the net present value is positive. You should make the investment. The NPV is positive.

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