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Suppose an investor is interested in purchasing the following income producing property at a current...

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Finance

Suppose an investor is interested in purchasing the following income producing property at a current market price of $3,750,000. The prospective buyer has estimated the expected cash flows over the next four years to be as follows: Year 1 = $315,000, Year 2 = $325,000, Year 3 = $335,000, Year 4 = $345,000. Assuming that the required rate of return is 7.0% and the estimated proceeds from selling the property at the end of year four is $5,000,000, what is the NVP of the project?

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