An investor is considering a real estate investment that costs $790,000. It is expected to produce cash flows of 5% of the investment amount (i.e., $39,500) each year for the next 5 years. The investor believes that the property can be sold for $990,000 at that time. If their required rate of return is 12%, what is the NPV on this investment?

An investor is considering a real estate investment that costs $790,000. It is expected to produce cash flows of 5% of the investment amount (i.e., $39,500) each year for the next 5 years. The investor believes that the property can be sold for $990,000 at that time. If their required rate of return is 12%, what is the NPV on this investment?

-$81,226

-$59,045

-$76,660

-$85,859

-$73,348