You must use the designated TVM formulas (PV, FV, PMT, NPER, RATE, NPV, IRR) in Excel to receive full credit.

5.) What is the PV of a real estate investment that produces a net operating income of $110,000 a year for the next 5 years and sales proceeds of $1,100,000 at the end of the 5th year? Assume your opportunity cost of capital is 9.00%. FV PMT PV 6.) You own a building that a local business wants to rent for the next 10 years. The business owner has offered to pay $480,000 today or pay $80,000 at the end of each of next 10 years. your required rate of return is 10.50%, which payment schedule should you accept? FV PMT PV Which option is better (lump sum or annual payments)? 7.) How much would you pay to participate in a real estate project that pays $0 for the first two years and $1,300,000 for the following three years if you can earna 10.00% return on other investments of similar risk? Year CFs 8) You are evaluating an investment that will provide the cash flows listed below at the end of each year. You believe that you should earn 11.25% percent compound annually on this investment. How much would you be willing to pay for this investment? 4 CFs 150,000 200,000 275,000 350,000 3,750,000 9.) An investment is expected to produce the following annual year-end cash flows: Year 1, $32,500; Year 2, $35,000; Year 3, $37,500; Year 4, $40,000; and Year 5, $45,000 If the investment costs you $160,000 today what is its expected annual internal rate of return, compounded annually? Year 0 4 CFs