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You own a property that will give you a total cash flow of $25,000 in year Cash flow is expected to increase by 5% for
You own a property that will give you a total cash flow of $25,000 in year Cash flow is expected to increase by 5% for the following 4 years. You are thinking about selling the property in the 5th year for $237,500. Calculate the total cash flow for each year. Then calculate the present value of the cash flows per year at 15% discount rate. How much % change would there be if the discount rate were 10%? 20%?
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