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A company has agreed to rent an office block for 15 years. The rent will be paid quarterly in advance and will increase every three
A company has agreed to rent an office block for 15 years. The rent will be paid quarterly in advance and will increase every three years at the rate of 4% per annum compound. The initial rent is set at 800,000 p.a. with the first payment due immediately. Calculate the NPV of the contract at a rate of interest of 8% p.a.
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