Considering a property-what is present value of investment

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Reference no: EM13811804

You are considering a property that is leased for 4 years. As the lessor you would recieve the following cash flows (at the end of each year): $17,800 in Year 1, $19,000 in Year 2, $12,500 in Year 3, and $10,000 in Year 4. At the end of the period you will receive a lump sum payment of $100,000 and the property reverts to the lessee. At an interest rate of 3% what is the present value of the investment?

Reference no: EM13811804

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