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You have the opportunity to purchase a triplex rental property. You expect this property to generate $108,000 in rent one year from now and for

You have the opportunity to purchase a triplex rental property. You expect this property to generate $108,000 in rent one year from now and for rent to increase at 4% per year for the following four years. Five years from now, you believe you will be able to sell the property for $750,000. Assume the interest rate is 7% per year.

Acknowledging that the dollar values above are in the future (and therefore are estimates) explore what the NPV would be if your assumptions about growth are wrong.

Using a Data Table (Data tab -> What-if analysis -> Data Table), calculate the NPV for values of g between 0% and 10% (NPV @ g=0%, NPV @ g=1% etc.)

Plot your results in a connected (the dots are connected) scatter plot

Do in excel please

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