Calculation of Net Present Value
A new tower in New York City has just opened up. Your company is considering investing 2,000,000 $ in buying the property and renting it for the next 5 years. By the end of each year, your company would get 200,000 $ because of renting. At the end of year 5, your company will sell the property for 2,100,000 $. What is the Net Present Value of the investment with a 10% per annum discount rate?
A. -231.857 $
B. 156.986 $
C. 62.090 $
D. 51.689 $