What is the present value of an apartment building that generates an after-tax cash flow of $30,000 in year one, $32,000 in year two, $35,000 in year three, $20,000 in year four, and $21,000 in year five? Assume that the discount rate is 16%. (round to the nearest cent) Can you walk through the steps to solve them?
Book: Real Estate Principles, A Value Approach, 6th Edition (Chapter 14 - time, opportunity cost, and value decisions)