Question
A real estate property is on the market. You have estimated it will give you net cash flows of $6978 per month. You hope to
A real estate property is on the market. You have estimated it will give you net cash flows of $6978 per month. You hope to sell it in 9 years for $302186. Your required return is 11.45%, how much should you be willing to pay for the property today? (Remember that you need a monthly "r" and a monthly "t". Also, there is a lump sum and an annuity here. Find the PV of each and add them together.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
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