Woodstock inc expects to own a building for five years then


Woodstock Inc. expects to own a building for five years, then sell it for $1,500,000 net of taxes, sales commissions and other selling costs. Woodstock's cost of capital is 11%. How much will the sale of the building contribute to the NPV of the project?

A) $890,177
B) $1,351,351
C) $1,500,000
D) $2,527,587

 

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Finance Basics: Woodstock inc expects to own a building for five years then
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