Determining the investment value


A real estate investment has the following expected cash flows:

Year Cash Flows

1 $10,000

2 25,000

3 -15,500

The discount rate is 10%. What is the investment's value at year 5?

a. $18,106.69

b. $24,100.00

c. $31,410.00

d. $29161.00

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Finance Basics: Determining the investment value
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