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1. You have purchased a small multi-family building in Livingston, NJ. The net present value of the cash flows from your equity in the investment
1. You have purchased a small multi-family building in Livingston, NJ. The net present value of the cash flows from your equity in the investment is $150,000.
a. If you provided the $600,000 equity investment necessary to acquire the building, what is the present value of the cash flows going to the equity investor?
b. What is the profitability ratio associated with this investment in percentage terms?
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