Assume you are buying an investment property with an initial cash investment of $25,000, and your desired rate of return on the investment is 10%. The annual cash flows from holding the property for 3 years are equal to $5000, $4000, $6000, and sales proceeds equal to $150,000. Assume you still owe the bank $100,000. Thus, the cash proceeds from selling the investment property after 3 years would be $50,000. 

What will be the NPV of this investment? Calculate.

Answer rating: 100% (QA)

To calculate the net present value NPV of the investment we need to discount the ... View the full answer