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Assume the following expected annual cash flows from operating a retail property investment: Year 1 = $500,000; Year 2 = $525,000; Year 3 = $550,000;
Assume the following expected annual cash flows from operating a retail property
investment: Year 1 = $500,000; Year 2 = $525,000; Year 3 = $550,000; Year 4 = $575,000; Year 5 = $600,000. If the net proceeds from the sale in Year 5 are $6.75 million determine the maximum price an investor is willing to pay for the property today if she requires a 12 percent return on her investments?
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