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Your real estate dream is to pay $400,000 for a house (all in cash) on Day 1. During the course of the following year, you

Your real estate dream is to pay $400,000 for a house (all in cash) on Day 1. During the course of the following year, you will put $80,000 of improvements into the house. Each of the three years thereafter, you expect to collect rents of $50,000 on the house. Finally, at the conclusion of the three years during which you are collecting rents, you expect to sell the house for $450,000. At 4% interest, what will your net present value of this investment be?

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