Question
You are considering investing in a real estate project which has an asking price of $30,000. The project is expected to generate annual cash flows
You are considering investing in a real estate project which has an asking price 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.
- What is the investment value of this property?
- What is the NPV of this investment opportunity?
- What is the IRR of this investment opportunity?
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Advanced Models And Tools For Effective Decision Making Under Uncertainty And Risk Contexts
Authors: Vicente González-Prida, María Carmen Carnero
1st Edition
1799832465,179983249X
