Sunset properties inc is considering investing 250 million


Sunset Properties, Inc., is considering investing $250 million in land that it will hold for 25 years and then resell. The investment generates pretax net cash flows of $40 million per year, expressed in todayís prices. Land values are expected to rise at the rate of 7% per year, while other prices are expected to rise at 2% per year. The tax rate is 45% and the OCC is 13%. Calculate the NPV of this project.

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Financial Management: Sunset properties inc is considering investing 250 million
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