Purchase Solution

Investment's present value

Not what you're looking for?

Ask Custom Question

10.
A real estate investment has the following expected cash flows:

Year Cash Flows

1 $10,000

2 25,000

3 50,000

4 35,000

If the discount rate is 8%, what is the investment's present value?

$103,799

$ 96,110

$ 95,353

$120,000

$ 77,592

Purchase this Solution

Solution Summary

This provide the steps to compute the investment's present value with the help of an example

Solution Preview

         
Present value=Future value/(1+interest rate)^duration

   Year     Cash Flows Present ...

Purchase this Solution


Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Motivation

This tests some key elements of major motivation theories.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.