A real estate property is on the market. You have estimated it will give you net cash
Fantastic news! We've Found the answer you've been seeking!
Question:
A real estate property is on the market. You have estimated it will give you net cash flows of $6978 per month. You hope to sell it in 9 years for $302186. Your required return is 11.45%, how much should you be willing to pay for the property today? (Remember that you need a monthly "r" and a monthly "t". Also, there is a lump sum and an annuity here. Find the PV of each and add them together.
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date: