Suppose you purchased an income producing property for $200,000 five years ago with a lease in...
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Suppose you purchased an income producing property for $200,000 five years ago with a lease in place that paid $25,000 per year at the end of each year. If you are able to sell the property at the end of year 5 for $219,850 (after receiving your final lease payment), what was the net present value (NPV) on this investment with a discount rate of 12%? You may assume all cash flows are net amounts. (Input your answer rounded to the nearest whole dollar and without the $ sign, e.g.. 1000) Suppose you purchased an income producing property for $200,000 five years ago with a lease in place that paid $25,000 per year at the end of each year. If you are able to sell the property at the end of year 5 for $219,850 (after receiving your final lease payment), what was the net present value (NPV) on this investment with a discount rate of 12%? You may assume all cash flows are net amounts. (Input your answer rounded to the nearest whole dollar and without the $ sign, e.g.. 1000)
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Answer rating: 100% (QA)
To calculate the Net Present Value NPV of this investment well need to discount all the cash flows b... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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