Consider a property with expected future net cash flows of


Consider a property with expected future net cash flows of $50,000 per year for the next 5 years (starting one year from now). After that, the operating cash flow should step up 20%, for the following 5 years. If you expect to sell the property 10 years from now for a price 12 times the net cash flow at that time, what is the value of the property if the required return is 10%?

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Financial Management: Consider a property with expected future net cash flows of
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