The Smiths are thinking about buying a rental unit that has the following cash flows. They want

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The Smiths are thinking about buying a rental unit that has the following cash flows. They want to know if this is a good investment.
Cost	250,000
Monthly Rent (2% annual increase)	1,600
Annual Expenses (2% inflation)	$1,000
Annual Appreciation	3%
The next best investment returns 10%	10%
They plan on keeping the property for five years then sell it.	5	yrs.



What is the Value of the house in five years?		< use a future value calculation

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Financial Accounting and Reporting a Global Perspective

Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

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Posted Date: Oct 23, 2023 03:10 AM

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