BECE Developments is considering purchasing a small commercial… BECE Developments is considering purchasing a small commercial building located in Prince George that will cost $800,000 and will require $125,000 in renovations immediately. Revenue from rent is estimated to be $200,000 a year.Expenses are estimated to be $50,000 a year. They plan to keep the building for 6 years and estimates they will be able to sell the building for 25% more than the original purchase price. BECE wants to earn at least 20% effective.Assume expenses occur at the beginning of the year and revenue at the end of the year.(a) What is the NPV? Express your answer in 2 decimal places.(b) Should BECE invest? Explain why or why not.(Enter either A, B, C, or D)A. Yes because NPV == 0B. Yes, because NPV < 0C. No, because NPV ==0D. No, because NPV < 0(c) What rate of return will you earn? Express your answer in percentage and 2 decimal places. Previous PageNext PagePage 1 of 3Submit Quiz0 of 3 questions savedBusinessFinance
