Determine the value of the property today

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Problem 1: Suppose that an income producing property is expected to yield cash flows for the owner of $10,500 in each of the next five years, with cash flows being received at the end of each period. If the opportunity cost of investment is 15% annually and the property can be sold for $100,500 at the end of the fifth year, determine the value of the property today.

Reference no: EM132841376

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