What is the net present value of a commercial real estate investment with the following cash flows, if your required return is 12% of similar risk investments? The cost of retail storefront project is $500,000, but expect to be able to sell it after 7 years for $600,000. You expect net rents to come in on this schedule:
Year 1: 12,000
Year 2: 24,000
Year 3: 36,000
Year 4: 36,000
Year 5: 36,000
Year 6: 36,000
Year 7: 36,000