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Suppose an investor is interested in purchasing the following income producing property for $1,100,000. The investor has estimated the expected cash flows over the next
Suppose an investor is interested in purchasing the following income producing property for $1,100,000. The investor has estimated the expected cash flows over the next four years to be as follows: Year 1 = $76,000, Year 2 = $98,000, Year 3 = $110,000, Year 4 = $130,000. Assuming the investors required rate of return is 12.00% and the estimated proceeds from selling the property at the end of year four is $1,220,000, what is the NPV of the project?
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