Assume cash flows are 0 you thinkn an ivnestmetn with this


You can buy a piece of land for $1M. You think you can sell it to a developer in 5 years for double. Assume cash flows are $0. You thinkn an ivnestmetn with this much risk requires an expected return of in the range of 12%-14% per year. What is the NPV?

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Finance Basics: Assume cash flows are 0 you thinkn an ivnestmetn with this
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