Q1(c). Due to high demand for apartments, the rental condo will earn the following cash flows over your anticipated three-year holding period: Year 0 (350,000) $ $ - Year 1 Rental Condo Investment Purchase S Rental Income $ Sale $ S Total Cash Flows S (350,000) $ 28,000 S Calculate the Net Present Value for the Rental Condo Investment. Show your work by either showing the Excel Function you used or laying out the formula you used to solve for NPV. - Year 2 $ 28,000 $ 28,000 $ $ 28,000 $ 555 - - Year 3 - 28,000 430,000 458,000

Q1(c). Due to high demand for apartments, the rental condo will earn the following cash flows over your anticipated three-year holding period: Year 0 (350,000) $ $ - Year 1 Rental Condo Investment Purchase S Rental Income $ Sale $ S Total Cash Flows S (350,000) $ 28,000 S Calculate the Net Present Value for the Rental Condo Investment. Show your work by either showing the Excel Function you used or laying out the formula you used to solve for NPV. - Year 2 $ 28,000 $ 28,000 $ $ 28,000 $ 555 - - Year 3 - 28,000 430,000 458,000

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter16: Real Estate And High-risk Investments

Section: Chapter Questions

Problem 1FPC

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