Business, 25.02.2020 02:51, sssavannahh

You can buy property today for $2.9 million and sell it in 5 years for $3.9 million. (You earn no rental income on the property.) a. If the interest rate is 8%, what is the present value of the sales price? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) b. Is the property investment attractive to you? c-1. What is the present value of the future cash flows, if you also could earn $190,000 per year rent on the property? The rent is paid at the end of each year. (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) c-2. Is the property investment attractive to you now?

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You can buy property today for $2.9 million and sell it in 5 years for $3.9 million. (You earn no re...