Risk investments-net present value

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Reference no: EM13829127

What is the net present value of a commercial real estate investment with the following cash flows, if your required return is 12% of similar risk investments? The cost of retail storefront project is $500,000, but expect to be able to sell it after 7 years for $600,000. You expect net rents to come in on this schedule:

Year 1: 12,000

Year 2: 24,000

Year 3: 36,000

Year 4: 36,000

Year 5: 36,000

Year 6: 36,000

Year 7: 36,000

Reference no: EM13829127

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