Cash flow Asset End of Year Amount Appropriate required return $ 7,000 7,000 7,000 A 1 9% 3 В 1 through oo 2$ 500 4% C 1 2$ 6% 3 42,000

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A:

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A:

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Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.