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You consider investing in a real estate project which has an asking price of $30,000. The project is expected to generate annual cash flows
You consider 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: $5,000 in years 1-5, $8,000 in years 6-8 and $19,000 in year 9. Your required rate of return for projects with similar risk is 10% annually. What is the NPV of this investment?
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Venture capital and the finance of innovation
Authors: Andrew Metrick
2nd Edition
9781118137888, 470454709, 1118137884, 978-0470454701
