Question regarding the financing arrangements

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Reference no: EM131015831

An office building is available for sale in Parma Heights. Cash flows from rent amount to $53,000 per year, every year, for the next ten years. Financing arrangements are made to borrow at 6.85%. The cost to buy the buidling is $350,000. Calculate its NPV.

a 33,303.34

b 31,025.15

c 29,940.54

d 24,844.67

Reference no: EM131015831

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Question regarding the financing arrangements : An office building is available for sale in Parma Heights. Cash flows from rent amount to $53,000 per year, every year, for the next ten years. Financing arrangements are made to borrow at 6.85%. The cost to buy the buidling is $350,000. Calculate..

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