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A real estate investor likes to “flip” houses. That is, he likes to buy a house...

A real estate investor likes to “flip” houses. That is, he likes to buy a house at a low price and then “flip” or sell the house for a higher price. The investor is looking at a foreclosed house that will cost $241,374.00 today. He will invest an additional $42,764.00 in the first year of owning the house to upgrade its features. He then believes he can sell the house for $420,169.00 at the end of the second year. What is the NPV of this investment if our investor wants to earn a 19.00% annual return on the house?

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jeff jeffy answered 9 months ago
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