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Given the following expected cash flow stream, determine the NPV of the investment opportunity: investment horizon: three years; end of first year NOI estimate: $886,464;
Given the following expected cash flow stream, determine the NPV of the investment opportunity: investment horizon: three years; end of first year NOI estimate: $886,464; end of second year NOI estimate: $913,058; end of third year NOI estimate: $940,450; price at which the property is expected to be sold at the end of year 3: $5,000,000; current market price of the property: $6,200,000; discount rate: 9%.
A) -$349,901. B) -$31,110. C) +$31,110. D) +$349,901
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