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Compute the possible apartment building value today

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A project generates $100,000 cash flow per year (similar to a dividend when looking at stocks). The investor thinks the end of year one cash flow will equal $100,000 times 1.03. The investor thinks these cash flows may grow at 3% per year. The investor wants to earn a 13% interest rate on this investment. Compute the possible apartment building value today. [constant growth model CH8].

Reference no: EM132481469

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