You can buy property today for 3 million and sell it in 5, Financial Accounting

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You can buy property today for 3 million and sell it in 5

You can buy property today for $3 million and sell it in 5 years for $4 million. (You earn no rental income on the property.)

a. If the interest rate is 8 percent, what is the present value of the sales price?

b. Is the property investment attractive to you? Why or why not?

c. Would your answer to (b) change if you also could earn $200,000 per year rent on the property?

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Financial Accounting: You can buy property today for 3 million and sell it in 5

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