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  3. 4. a project generates $100,000 cash flow per year

4. A project generates $100,000 cash flow per year (similar to a dividend when looking...

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Finance

4. A project generates $100,000 cash flow per year (similar to a dividend when looking at stocks). The investor thinks the end of year one cash flow will equal $100,000 times 1.03. The investor thinks these cash flows may grow at 3% per year. The investor wants to earn a 13% interest rate on this investment. Compute the possible apartment building value today.

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