4. What is the NPV of $1,000 received at the end of the next four years and $1,800 received at the end of the fifth year if your required return is 10%?

5. Assuming no income or holding costs during the period, if you purchased a vacant parcel of land eight years ago for $1,150,000, how much would you have to sell it for today in order to yield a 12% annual return on your investment?

Solve the following questions (6-10) using TVM formulas in Excel. Show your work to receive full credit.

6. You own a building that a local business wants to rent for the next 10 years. The business owner has offered to either pay you (A) $50,000 in a lump sum today or (B) $8,500 at the end of each of next 10 years. If your required rate of return is 12%, which payment schedule should you accept?

7. How much would you pay to participate in a real estate project that pays nothing for the first 10 years and $25,000 for the following 10 years if you can earn 14% return on other investments of similar risk?

8. Calculate the IRR and NPV for the following cash flows. Assume a 12% discount rate

Year	Project 1 Cash flow	Project 2 Cash flow
0	-$25,000	-$25,000
1	6,000	10,000
2	5,500	12,500
3	7,000	5,000
4	9,500	4,000
5	16,500	2,000

9. If your tenant pays you rent of $15,000 a year for 8 years, what is the present value of the series of payments discounted at 13% annually? Assume rent is paid at the end of each year.

10. You are going to invest $280,000 in a real estate investment project that generates the following cash flows.

Assuming a 12.5% discount rate, what is the NPV of this project? What is the IRR?