When considering the time value of money in making an investment decision, an investor would purchase a property when:

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter11: Investor Losses
Section: Chapter Questions
Problem 26DQ
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When considering the time value of money in making an investment decision, an investor would purchase a property when:

I.  Present Value < purchase price

II. IRR (Internal Rate of Return) < discount rate (investor’s required return)

A: I only
B: II only
C: both I and II
D: neither I nor II           
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