Question
Use the following information for the next three questions You are considering investing in a real estate project that requires an equity investment of $30,000.
Use the following information for the next three questions
You are considering investing in a real estate project that requires an equity investment of $30,000. The project is expected to generate annual cash flows to you of: $4,500 in year 1, $5,000 in years 2-5, $8,000 in year 6, and $19,000 in year 7. Your required rate of return for projects with similar risk is 12% annually. A:What is the investment value of this propertys cash inflows? Enter your answer to the nearest penny with no punctuation other than a decimal point. Do not enter commas or dollar signs.
B: What is the NPV of this investment opportunity? Enter your answer to the nearest penny with no punctuation other than a decimal point. Do not enter commas or dollar signs.
C: What is the IRR of this investment opportunity? Enter your answer to four decimal places with no punctuation other than a decimal point. Do not enter a percentage (%) sign. For example, if you think the answer is 20.34%, enter your answer as 0.2034 (note the leading zero).
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