Question

Suppose that a property can generate cash flows of $10,000 per year for eight years and can sell for $80,000 at the end of the investment period. Assuming a discount rate of 10%, what is the present value of this property (Assume end of period cash flows in your calculation)?
A. $117,320
B. $160,000
C. $133,349
D. $90,670

Answer

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