You decide to invest money for buying a house. You initially invest $50,000 and plan on making annual payments of $3,000 for 15 years. You want to rent the house for $2.000 starting on year for 8 years. You estimate that you will spend $1.500 for repairs at year 6 and $2,000 a year 12. Draw the cash flow diagram

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter14: Multinational Capital Budgeting
Section: Chapter Questions
Problem 1IEE
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You decide to invest money for buying a house. You initially invest $30,000
and plan on making annual payments of $3,000 for 15 years. You want to rent the house
for $2,000 starting on year 4 for 8 years. You estimate that you will spend $1,500 for
repairs at year 6 and $2,000 at year 12. Draw the cash flow diagram
Transcribed Image Text:You decide to invest money for buying a house. You initially invest $30,000 and plan on making annual payments of $3,000 for 15 years. You want to rent the house for $2,000 starting on year 4 for 8 years. You estimate that you will spend $1,500 for repairs at year 6 and $2,000 at year 12. Draw the cash flow diagram
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