A property that you are considering for purchase is expected to generate the following cash...
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A property that you are considering for purchase is expected to generate the following cash flows over the next five years: Year 1: $35,000 Year 2: $36,050 Year 3: $37,100 Year 4: $38,200 Year 5: $39,350
You would sell this property after 5 years, and have a required rate of return on such investments of 12%. You also expect the propertys value to increase by 3.5% annually for the next five years. Based on this information, what would be a fair value for this property today
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