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A real estate investment has the following expected cash flows: Year Cash Flows 1 $10,000 2 25,000 3 50,000 4 35,000 The initial cost is
A real estate investment has the following expected cash flows:
Year Cash Flows
1 $10,000
2 25,000
3 50,000
4 35,000
The initial cost is $85,000. The discount rate is 8.25 percent. What is the investment's present value?
a). $10,479
b). $13,479
c.) $16,479
d). $14,479
e). $15,479
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