You are evaluating buying an apartment building. It is expected to generate annual cash flow of $100,000
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Question:
You are evaluating buying an apartment building. It is expected to generate annual cash flow of $100,000 for each of the next 6 years. Please use this information for problems 3 - 5. If you have to pay $2,000,000 to buy the apartment today and your required return is 7.5% on this investment, what would you need to sell the apartment for in 6 years to generate the required return? Enter your answer to the nearest dollar with the dollar sign and as a positive number.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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