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I need to show all work. You are considering investing in a real estate project. Your one ownership unit would cost $30,000. The project is
I need to show all work.
You are considering investing in a real estate project. Your one ownership unit would cost $30,000. The project is expected to generate annual cash flow for you of: $4,500 in year 1, $5,000 in years 2-5, $8,000 in year 6 and $19,000 in year 7. With a discount rate of 11.0%, what is the net present value (NPV) of this investment? Should you invest in this deal? Why or why not?
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