Valuing an Office Building
Step 3: Discount future cash flows
Step 4: Go ahead if PV of payoff exceeds investment
PV= ( 1 C+^1 r) = ( 1 +^400. 07 ) = 374
NPV = − 350 + 374 = 24
barry
(Barry)
#1
Valuing an Office Building
Step 3: Discount future cash flows
Step 4: Go ahead if PV of payoff exceeds investment
PV= ( 1 C+^1 r) = ( 1 +^400. 07 ) = 374
NPV = − 350 + 374 = 24