Question: You have been approached by a developer who wants you to invest in a strip mall complex. Based upon development costs, rent, and expenses they

You have been approached by a developer who wants you to invest in a strip mall complex. Based upon development costs, rent, and expenses they present the following cash flows to you. Using a cost of funds of 10% determine the conventional payback period and the discounted payback period. Would you make this investment? Justify your answer.

Time Period	Cash Flows
0	$ -7,000,000.00
1	$ 2,500,000.00
2	$ 1,900,000.00
3	$ 1,800,000.00
4	$ 1,800,000.00
5	$ 1,900,000.00
6	$ 1,500,000.00

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