QUESTION 7 Based on the following data the investment has a positive net present value....
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Accounting
QUESTION 7
Based on the following data the investment has a positive net present value.
| time | cash flows from investment in a leased property | discount rate |
| 0 | -1,750,000 | 7% |
| 1 | $240,000 | |
| 2 | $240,000 | |
| 3 | $240,000 | |
| 4 | $240,000 | |
| 5 | $240,000 | |
| 6 | $240,000 | |
| 7 | $240,000 | |
| 8 | $240,000 | |
| 9 | $240,000 | |
| 10 | $240,000 |
True
False
QUESTION 8
You will not pay more for the property than the sum of the present value of payments generated by the property over the ten-year period and the present value of the future value of the property. Use the Excel formula "PV" to answer this question based on the given data.
You would offer $75,000 for the property.
| rate | 10% |
| nper | 15 |
| pmt | $1,000 |
| fv | $300,000 |
| type | 0 |
True
False
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