What is the net present value of this investment

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You are considering investing in a real estate project. Your one ownership unit would cost $30,000. The project is expected to generate annual cash flow of: $4,500 in year 1, $5,000 each year 2-5, $8,000 in year 6 and $19,000 in year 7. You require a rate of return of 11.0%. What is the net present value (NPV) of this investment? Should you invest in this deal? Why or why not?

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Reference no: EM131517471

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