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(a) I construct a building at a cost of Rs.90,00,000 and expected to earn an annual rent of Rs.10,00,000 subject to an annual growth of
(a) I construct a building at a cost of Rs.90,00,000 and expected to earn an annual rent of Rs.10,00,000 subject to an annual growth of 5% forever. What is the P.V of the rentals I receive for infinite period if the discount rate is 10%? (b) Write notes on: i. Deferred annuity ii. P.V of perpetual annuity
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