1. Four years ago you bought an investment that you expected to provide a net cash flow of $15,000 per year for the next 14 years. So far, the investment has performed exactly as promised. If the appropriate discount rate is and was 11%, what is the investment worth today?
2. A residential neighborhood developer bought a 70-acre parcel of raw land 10 years ago for $482,000. Considering the market cycle peak that recently occurred, the land has depreciated in value at an average annual rate of 8%. What is the land worth today?