She has found property she thinks might be good deal

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Reference no: EM132030697

Gloria wants to be a real estate investor. She has found a property she thinks might be a good deal. She has done some research about the property that has led her to the following forecast of the money she will be able to put in her pocket at the end of each of the next five years (with disposition at the end of year 5) as a result of owing this property: Year 1: $10,000 Year 2: $20,000 Year 3: $50,457 Year 4: $4578 Year 5 $45783 If Gloria decides that she will only buy this property if she can earn an annual return of 8 percent, how much equity should she be willing to invest in the property today?

Reference no: EM132030697

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