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(Solved): 30. The office building your company is considering acquiring has an acquisition price of $1,550,00 ...



30. The office building your company is considering acquiring has an acquisition price of $1,550,000 and your company only buys all-cash. If net cash flows are Yr. 1 and 2 = $195,000 then Yrs. 3,4 and 5 are $225,000 and your company thinks they can sell the building at the end of Yr 5 at $1,700,000, what is the NPV of this deal if your company uses a 10% discount rate?

a. $306,427

b. $451,853

c. $453,715

d. $331,846



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 The office building your company is considering acquiring has an acquisition price of $1,550,000 and your company only buys all-cash.  
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