An investor buys a condo in Des Moines priced at $140,000. The investor finds a tenant who agrees and signs a step up lease to rent this property. His rents will start at $1200 per month for the first year and increase by $100 each year for a period of 3 years. The investor sells the property at the end of 3 years for $130,000. 

If the required annual return to the investor was 8.4%, what was the NPV of this investment deal? (State your answer rounded to 2 decimals)

Answer rating: 100% (QA)

The Net Present Value NPV of an investment is calculated by discounting all the cash flows inflows a... View the full answer