4. A partnership owns an aging 4-unit retail center in a local campus property. Cash flow projections for the next 10 years are: $50,000 for years 1 and 2; $60,000 for years 3 and 4; $70,000 for years 5 and 6; $80,000 for years 7 and 8; $90,000 for years 9 and 10. With 8% as the discount rate, calculate the PV. Compare this investment to the property listed in the previous problem. What would you recommend to a prospective investor with conservative investing goals and the same holding period?

Answer rating: 100% (QA)

Present Value Calculation The cash flows are provided for the next 10 years Years 1 2 50000 Years 3 ... View the full answer