2. A real estate investment has the following expected cash flows: Cash Flows $10,000 25,000 50,000 35,000 Year 1 3. 4. The discount rate is 8 percent. What is the investment's present value?
2. A real estate investment has the following expected cash flows: Cash Flows $10,000 25,000 50,000 35,000 Year 1 3. 4. The discount rate is 8 percent. What is the investment's present value?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
![2.
A real estate investment has the
following expected cash flows:
Year
Cash Flows
$10,000
25,000
50,000
4 35,000
discount rate is 8 percent.
the investment's present
The
What is
value?
$103,799
b $ 96,110
$ 95,353
$120,000
$ 77,592
a.
c.
d.
e.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4cda9f8c-10b5-40be-8b5a-40e05a696292%2F39746689-0748-4a9b-a569-c5c83c902ffd%2F0rfwjny_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2.
A real estate investment has the
following expected cash flows:
Year
Cash Flows
$10,000
25,000
50,000
4 35,000
discount rate is 8 percent.
the investment's present
The
What is
value?
$103,799
b $ 96,110
$ 95,353
$120,000
$ 77,592
a.
c.
d.
e.
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