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Luke is considering the purchase of a real estate investment that is expected to provide the following cash flows: year 1, $5,000; year 2, $6,500;

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Luke is considering the purchase of a real estate investment that is expected to provide the following cash flows: year 1, $5,000; year 2, $6,500; year 3, $10,000; year 4, $11,000; and year 5, $175,000 (which includes the cash flow from the sale of the property). If Luke requires an 8% return on his investment, how much should he pay for this property? O $133,605 O $207,500 O $145,328 165,463

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