You are considering investing in a real estate porject. Your one ownership unit would cost $ 30,000 the project is expected to generate annual cash flows of:
$4,500 in year 1.
$5,000 in year 2-5.
$ 8,000 in year 6 and
$ 19,000 in year 7.
You require a rate of return of 10.0% what is the net present value (NPV) of this investment? Should you invest in this deal? why or why not?