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A group of investors decide to buy a rental property for $1,500,000. This property will generate $10,000 rental income for the first year, but it
A group of investors decide to buy a rental property for $1,500,000. This property will generate $10,000 rental income for the first year, but it is expected to generate $30,000 rental income for each year after that. At the end of five years, the investors plan to sell the rental property, which is expected to sell at a gain of $200,000. If the target rate of return is 4%, what is the net present value (NPV) of this rental property?
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