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Suppose a condo generates $10,000 in cash flows in the first year. If the cash flows grow at 4% per year, the interest rate is 8%, and the building will be sold at the end of 22 years with a value of $90,000, what is the present value of the condo's cash flow? Enter your response below (rounded to 2 decimal places). Number

Suppose a condo generates $10,000 in cash flows in the first year. If the cash flows grow at 4% per year, the interest rate is 8%, and the building will be sold at the end of 22 years with a value of $90,000, what is the present value of the condo's cash flow? Enter your response below (rounded to 2 decimal places). Number

Essentials Of Investments
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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Suppose a condo generates $10,000 in cash flows in the first year. If the cash flows grow at 4% per year, the interest rate is 8%, and the building will be sold at the end of 22 years with a value of $90,000, what is the present value of the condo's cash flow? Enter your response below (rounded to 2 decimal places). Number
Transcribed Image Text:Suppose a condo generates $10,000 in cash flows in the first year. If the cash flows grow at 4% per year, the interest rate is 8%, and the building will be sold at the end of 22 years with a value of $90,000, what is the present value of the condo's cash flow? Enter your response below (rounded to 2 decimal places). Number
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