A young couple just had their first baby and is looking for additional income. They are...
A young couple just had their first baby and is looking for additional income. They are considering renting out the space above their garage as an apartment. To convert the space, the couple will have to invest $30,000.00 today. It will take one year before they can begin renting the space. Let’s suppose that they can rent the apartment for $703.00 per month for 11.00 years. (first payment will be in one year, annuity due). The couple would like to earn 6.00% APR on this investment. What is the NPV of this opportunity?
Homework Answers
What is the NPV of this opportunity
=-30000+((703*((1-(1+(6.00%/12))^(-11*12))/(6.00%/12)))*(1+(6%/12)))/(1+(6%/12))^12
=34190.99
the above is answer..
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a thumbs up and this is my last question I can post this month.
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