You are considering investing in a real estate project which has an asking price of $30,000....

You are considering investing in a real estate project which has an asking price of $30,000. The project is expected to generate annual cash flows to you of: $4,500 in year 1, $5,000 in years 2-5, $8,000 in year 6 and $19,000 in year 7. Your required rate of return for projects with similar risk is 12% annually.

What is the investment value of this property?

What is the NPV of this investment opportunity?

What is the IRR of this investment opportunity?

Expert Solution

jeff jeffy answered 4 months ago

Disadvantages of investing in real estate

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I need critical log on real estate project, means survey about real estate project.

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