How much should you pay for the investment

Reference no: EM133368539

Question: Suppose you have the opportunity to make an investment in a real estate venture that expects to pay investors $910 at the end of each month for the next eight years. You believe that a reasonable return on your investment should be an annual rate of 15 percent compounded monthly

Required:

a. How much should you pay for the investment?

b. What will be the total sum of cash you will receive over the next eight years?

c. What do we call the difference between the present value and total cash received?

Reference no: EM133368539

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