Determine the net present value (NPV) of the proposed investment to its equity investors:

Investment holding period: 5 years Before-tax cash flow (BTCF) for each of the next 5 years: $127,628 Before-tax equity reversion (BTER) at end of 5 years: $1,595,350 Applicable discount rate: 5.5% Equity invested: $1,720,000 Going-out cap rate: 8.54% Year 6 NOI: $158,720

		$45,397
		-$158,563
		$247,047
		$1,756,665