What is the NPV of office development if construction costs increase to $355,000? Assume that the opportunity cost of capital is 12 percent. Is development still a worthwhile investment? How high can development costs be before the project is no longer attractive? Now assume that the opportunity cost of capital is 20 percent with construction costs of $355,000. Why is office development no longer an attractive investment?

Answer rating: 100% (QA)

a The NPV of office development with construction costs of 355000 is NPV 3... View the full answer