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You are considering purchasing an apartment building for 1.2 million dollars. You expect that the yearly cash inflows for the first 3 years will be
You are considering purchasing an apartment building for 1.2 million dollars. You expect that the yearly cash inflows for the first 3 years will be $175,000 and year 4 and 5 will be $200,000 and $250,000, respectively. At the end of year 5 you sell the building for 1.4 million dollars. What is the NPV of this investment if you assume your required rate of return is equal to the IRR?
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