An investor buys a house for £130,000. 5 months later, the investor spends £8,000 to renovate the house. One year after buying the house, the investor sells it for £175,000. If the interest rate is 9% p.a, what is the net present value of this cashfl

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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) An investor buys a house for £130,000. 5 months later, the investor spends £8,000 to renovate the house.

One year after buying the house, the investor sells it for £175,000.

If the interest rate is 9% p.a, what is the net present value of this cashflow?

 

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