Question
You are considering investing in a real estate property that requires an initial investment of $500,000. The property is expected to generate annual rental income
You are considering investing in a real estate property that requires an initial investment of $500,000. The property is expected to generate annual rental income of $75,000 for the next 10 years. After 10 years, the property is expected to be sold for $1,000,000. The required rate of return is 8%. What is the net present value (NPV) of this investment? Should you invest in this property?
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