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A historical site produces a net operating income of $700,000 in a year. Assuming the operating income generated is perpetual in nature and it grows
A historical site produces a net operating income of $700,000 in a year. Assuming the operating income generated is perpetual in nature and it grows at 2% per year. Using a discount rate of 8%, the sites value is estimated to be
a) $7,000,000 b) $8,750,000 c) $11,666,667 d) $35,000,000
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