Question
A landlord is evaluation his investment in a new residential apartment building. According to his evaluation, internal rate of return on this investment is 8%
A landlord is evaluation his investment in a new residential apartment building. According to his evaluation, internal rate of return on this investment is 8% if (i) annual rent is $40,000 for 10 years and (ii) resale value of the building is 5% of the initial value at the end of the 10th year. What is the purchase price of the building?
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
