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Given the following expected cash flow stream, determine the Net Present Value (NPV = Total PV - Current market price) of the investment opportunity: Hold
Given the following expected cash flow stream, determine the Net Present Value (NPV = Total PV - Current market price) of the investment opportunity: Hold period: 6 years Annual NOI estimate: $10,500 (remain same for the 6 years) Price at which the property is expected to be sold at the end of year 6: $100,000 Discount rate: 8% Current market price of the property: $120,000 Hint: Use the NPV(discount rate, reference of future cash flow) function in Excel $43,000, the investment should be acceptable +$8,443, the investment should be accepted +$43,000, the investment should be rejected $8,443, the investment should be rejected
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