Question: The yearly discount rate is 8 percent and you have dollar 1,700,000 to invest. You may invest your funds that you do not invest at 8 percent. You have your choice of the following real estate investments. Which one(s) should you select? You may select an investment only once.
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Cost
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Value 5 years from now
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a. Alpha Acres
|
800,000
|
1,700,000
|
|
b. Beta Bluff
|
900,000
|
1,800,000
|
|
c. Charlie Coast
|
1,100,000
|
1,900,000
|
|
d. Delta Delta
|
700,000
|
1,300,000
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|
e. Echo Estuary
|
600,000
|
1,100,000
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|
f. Foxtrot Fairway
|
400,000
|
900,000
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