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Assume that you are considering purchasing a commercial property today (which is the beginning of Year 1) for $100,000. You as an investor have a

Assume that you are considering purchasing a commercial property today (which is the beginning of Year 1) for $100,000. You as an investor have a discount rate of 9%. The property is expected to generate cash flows in the amounts of $10,000 at the end of year 1, $13,000 at the end of year 2, $16,000 at the end of year 3, $20,000 at the end of year 4, $125,000 at the end of year 5. Compute the present value of the expected cash flows generated by this property.

n amount
CF0 $ (100,000)
CF1 $ 10,000
CF2 $ 13,000
CF3 $ 16,000
CF4 $ 20,000
CF5 $ 125,000

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