1. How much would you pay to participate in a real estate project that pays nothing for the first 10 years and $2,500 for the following 10 years if you can earn 13% return on other investments of similar risk?
2. If your tenant pays you rent of $24,000 a year for 10 years, what is the present value of the series of payments discounted at 10% annually
3. You are going to invest $300,000 in a real estate investment project that generates the following cash flows. Year 1 2 3 4 5 Cash flow 100,000 100,000 100,000 100,000 100,000 Assuming an 11% discount rate, what is the NPV of this project? What is the IRR?