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4. A partnership owns an aging 4-unit retail center in a local campus property. Cash flow projections for the next 10 years are: $50,000 for
4. A partnership owns an aging 4-unit retail center in a local campus property. Cash flow projections for the next 10 years are: $50,000 for years 1 and 2; $60,000 for years 3 and 4; $70,000 for years 5 and 6; $80,000 for years 7 and 8; $90,000 for years 9 and 10. With 8% as the discount rate, calculate the PV. Compare this investment to the property listed in the previous problem. What would you recommend to a prospective investor with conservative investing goals and the same holding period?
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
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