macroII

Investment. Can some please explain: Some Mr. M lives in London. At some point he decides to sell his apartment for $17 million and go live in Irkutsk. In return, he wants to buy a house to live with a ready-made business. To make a purchase, he plans to use money from selling an apartment and own savings. He searches in the Internet for ads on options for selling a business in Irkutsk. Unfortunately, Mr. M does not know the macroeconomy and therefore appeals to the agency so that the experts can make the right choice. The interest rate on deposits is an average of 15 percent. He plans to do business for no more than 10 years.

Identify, for each of the options (if possible) the Net Present Value for 10 years and give a recommendation on the best investment option.

(investment in this case will be the amount equal to the difference between the market value of the object and the amount of the sale of an apartment in London)

If he lives in London, why isn’t he selling his apartment for GBP? Why USD?

Sounds fishy.