Question

The purchase price of a piece of property is $70,000. After analysis of the cash flows, expected sales price, and expected yield, the investor decides the deal has a present value (PV) of $80,000. What is the net present value (NPV), and should the investor take the deal?
A.$10,000; Yes
B.$10,000; No
C.-$10,000; Yes
D.-$10,000; No

Answer

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