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What is the netpresent value of the following income streams?Discount rate is 8.75%. Purchase Price: $12,500,000 Year 1 $625,000 Year 2 $712,000 Year 3 $729,000

What is the netpresent value of the following income streams?Discount rate is 8.75%.

  • Purchase Price: $12,500,000
  • Year 1 $625,000
  • Year 2 $712,000
  • Year 3 $729,000
  • Year 4 $694,000
  • Year 5 757,000
  • Net Sale (Reversion)$13,750,000 at the end of the 5th year

Using the cash flows for years 1-5 from question 13, and the reversion, what is the IRR for the investment if you pay $12,855,000 for the property?

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