Question: You would like to develop an office building. Your analysts forecast that it will cost you 300,000 immediately (time 0), and it will cost you

You would like to develop an office building. Your analysts forecast that it will cost you 300,000 immediately (time 0), and it will cost you 500,000 in one year (time 1). They forecast you can sell the building for 1,400,000 in two years (time 2). If your discount rate is 5%, what is the net present value of this investment?

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