Question: A friend has asked for your help determining whether she should invest in a property. She tells you that the property will have annual cash

A friend has asked for your help determining whether she should invest in a property. She tells you that the property will have annual cash flows of $12,000 during the first two years and will increase by $2,000 every two years. She plans to keep the property for six years and then sell it for an expected price of $300,000. She has an annual discount rate of 8%, and the current market price for the property is $260,000. Calculate the NPV of this investment opportunity. Should your friend invest in this property? Would your answer change if the discount rate drops to 7%? What should be the required discount rate to start investing in this property? (Round your answers to

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