Question: You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0), and it will cost

You would like to develop an office building. Your analysts forecast that

You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0), and it will cost you $700,000 in one year (time 1). They forecast you can sell the building for $2,400,000 in two years (time 2). If your discount rate is i = 5%, what is the net present value of this investment? You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0), and it will cost you $700,000 in one year (time 1). They forecast you can sell the building for $2,400,000 in two years (time 2). If your discount rate is i = 11%, what is the internal rate of return for this investment? You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0), and it will cost you $700,000 in one year (time 1). They forecast you can sell the building for $2,400,000 in two years (time 2). If your discount rate is i= 63% should you invest in this building? Write 0 for no, and write 1 for yes.

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