You're planning on constructing a building that will be sold to somebody else at $12'500.000 ten years from now. You can, in the other hand, invest in a bond that pays 8%. If you are asked to invest $6'000.000 in the building, what would you recommend? Show your numbers in the Excel file. The answer given is Not invest, I need the process and reason why not invest

You're planning on constructing a building that will be sold to somebody else at $12'500.000 ten years from now. You can, in the other hand, invest in a bond that pays 8%. If you are asked to invest $6'000.000 in the building, what would you recommend? Show your numbers in the Excel file. The answer given is Not invest, I need the process and reason why not invest

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 8P

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3. You're planning on constructing a building that will be sold to somebody else at$12'500.000 ten years from now. You can, in the other hand, invest in a bond that pays 8%. If you are asked to invest $6'000.000 in the building, would you recommend to invest or not?
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