Which Option would yield the higher Net Present Value of Expected Values? Option 1: a sale at the end of Year 3 for $2,000,000 with an Annual Discount Rate of 7%, OR Option 2: a sale at the end of Year 3 for $1,800,000 with an Annual Discount Rate of 4%?
Real Estate Financial Modeling / Questions / Which Option would yield the higher Net Present Value of Expected Values? Option 1: a sale at the end of Year 3 for $2,000,000 with an Annual Discount Rate of 7%, OR Option 2: a sale at the end of Year 3 for $1,800,000 with an Annual Discount Rate of 4%?
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