Calculate the maximum price that investors with assumptions

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Consider the levered DCF model provided to you in tab A3 of the Excel spreadsheet. a. Calculate the maximum price that an investors with the assumptions made in the model should be willing to pay for that property. Show this maximum price in cell C8. b. If you expect a general increase in the risk premium for real estate investments over the next 8 years, how would this affect the expected levered return on this property? Briefly Explain.

Reference no: EM131873650

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