What would you need to sell the apartment for in six years

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Problem: You are evaluating buying an apartment building. It is expected to generate annual cash flow of $100,000 for each of the next 6 years. Use this information for problems 3 - 5. If you have to pay $2,000,000 to buy the apartment today and your required return is 7.5% on this investment, what would you need to sell the apartment for in 6 years to generate the required return?

Reference no: EM133664038

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