Illustrate what is the net present value of this property

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Q. A real estate investment is expected to return to its owner $3,500 per year for 16 years after expenses. At the end of year 16 the property is expected to be sold for $49,000. Assuming the required rate of return is 14% for investments with this degree of risk; illustrate what is the net present value of this property if the purchase price is $28,000 today?

Reference no: EM13122395

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