devrat Alisha is considering buying a house while she is at University. She plans to live in the houseand also rent to her friends. The house will cost $350,000 to purchase and it has 4 bedrooms (3she can rent). She will pay cash for the house! She estimates that she can earn $34000 per yearin rental income. She estimates that her expenses will be $19000 per year. At the end of 5-years she estimates that she will be able to sell the house for $620,000. If she uses a MARR of7% compounded monthly, what is the present worth of her investment plan?

Present worth means that how much is value of future cash flow are more than amount of initial…

sha is considering buying a house while she is at University. She plans to live in the hou d also rent to her friends. The house will cost $350,000 to purchase and it has 4 bedroo e can rent). She will pay cash for the house! She estimates that she can earn $34000 pe rental income. She estimates that her expenses will be $19000 per year. At the end of 5- ars she estimates that she will be able to sell the house for $620,000. If she uses a MAR 6 compounded monthly, what is the present worth of her investment plan?