You are considering the purchase of an apartment building that is currently under construction. The building is expected to generate $350,000 annually for 5 years at which time you estimate it has a value of $1.5 million. If your opportunity cost of capital is 12%. 

What is the maximum amount you should pay for this building? (rounded to the nearest dollar)

Answer rating: 100% (QA)

To determine the maximum amount you should pay for the apartment building we need to calculate the p... View the full answer