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Suppose that commercial property is expected to yield cash flows for the owner of $38,500 in each of the next five years, with cash flows
Suppose that commercial property is expected to yield cash flows for the owner of $38,500 in each of the next five years, with cash flows being received at the end of each period. If the opportunity cost of investment is 7.00% annually, and the property can be sold for $1,800,000 at the end of the fifth year. Determine the property's value today.
$1,283,375
$1,348,828
$1,441,233
$1,321,875
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