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1. A real estate investment has the following expected cash flows: Year Cash Flows 1 $10,000 2 24,000 3 32,000 4 35,500 The initial cost

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1. A real estate investment has the following expected cash flows: Year Cash Flows 1 $10,000 2 24,000 3 32,000 4 35,500 The initial cost is $75,000. The discount rate is 8.125 percent. What is the investment's net present value? a. $6,065 b. $7,800 c. $7,045 d. $6,110 e. $6,065

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