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Given the Following Expected Cash Flow Stream, Determine the NPV

Question 26

Multiple Choice
Given the following expected cash flow stream, determine the NPV of the investment opportunity. Investment Horizon: 3 years; End of first year NOI estimate: $886,464; End of second year NOI estimate: $913,058; End of third year NOI estimate: $940,450; Price at which the property is expected to be sold at the end of year 3: $5,000,000; Current market price of the property: $6,200,000; Discount rate: 9%.
A) -$321,010.66
B) -$28,451
C) +$28,451
D) +$321,010.66

Given the following expected cash flow stream, determine the NPV of the investment opportunity. Investment Horizon: 3 years; End of first year NOI estimate: $886,464; End of second year NOI estimate: $913,058; End of third year NOI estimate: $940,450; Price at which the property is expected to be sold at the end of year 3: $5,000,000; Current market price of the property: $6,200,000; Discount rate: 9%.


A) -$321,010.66
B) -$28,451
C) +$28,451
D) +$321,010.66

Correct Answer:

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