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You are considering purchasing a piece of rental real estate in the TCU area that had a cash flow in the year that just ended
You are considering purchasing a piece of rental real estate in the TCU area that had a cash flow in the year that just ended equal to $ The next cash flow to be paid out by this investment property will be received one year from today will be higher than the cash flow produced last year. You expect that strong rental demand by TCU students will make the cash flows in the future years grow at the same rate into the future thereafter. Assume the yearly required rate of return for this type of real estate investment is What is the most you should be willing to pay today for this property?places
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