a)How much should you be willing to pay today for Gopher Gardens? b) If you can buy the property for $43 million, what is the NPV of this opportunity?

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A: Discounting is a technique through which PV or future cashflow is computed by consider appropriate…

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A:

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A: Present value refers to the money present today being more valuable than the money will receive in…

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A: Net present value is the difference between the present value of cash flow and initial investment…

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A: In this question, we are required to determine the future value after 45 years.

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A: Sale Price = $650,000Down Payment = 20% of Sale PriceTime Period = 30 YearsInterest Rate = 7.2%

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A: Future value = fv = $50,000 Time = t = 20 * 12 = 240 months Inflation rate = ir = 3% Nominal rate =…

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A: Price we should pay is present value of cash flows

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A: The present value is today's value of future cash flows. It represents the discounted value of cash…

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A: Calculation of the present value of the cash return is shown below:

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Factors Affecting Housing Decision