(Solution Document) Consider a property that is expected to produce a constant net income of $150,000 per annum in perpetuity.



25.             Consider a property that is expected to produce a constant net income of

$150,000 per annum in perpetuity. An investor who is considering purchasing the property plans to hold it for 10 years. The investor expects the property to appreciate by 100% (double in value) over this period. The discount rate is 15%. What is the maximum price an investor should be willing to pay for the property?

 







About this question:

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by .
SiteLock