Calculate the discounted cash flow

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Calculate the Discounted Cash Flow (DCF) of both these investments? Show the value of each project once the period of investment has been fulfilled. (15 years).

1. You could invest $300,000 in a home that you expect will go up in value. After some due diligence/ research you determined that you could expect to sell the house in 15 years for a total of 450,000! This would net you a total of $150,000 dollars, of course not subtracting repairs and unseen expenses along the way.

2. You could invest the $300,000 in a REIT where after your research you can expect in that same period of 15 years a total return of $500,000.

Reference no: EM133305543

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