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What is the net present value of investment

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Reference no: EM131725743

You are considering investing in a real estate porject. Your one ownership unit would cost $ 30,000 the project is expected to generate annual cash flows of:

$4,500 in year 1.

$5,000 in year 2-5.

$ 8,000 in year 6 and

$ 19,000 in year 7.

You require a rate of return of 10.0% what is the net present value (NPV) of this investment? Should you invest in this deal? why or why not?

Reference no: EM131725743

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