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A property is leased for triple-net rent of $12,000 per year for six (6) years. The lease requires rent to be paid at the end
A property is leased for triple-net rent of $12,000 per year for six (6) years. The lease requires rent to be paid at the end of each year, and the property was financed with a mortgage loan at 6% interest. Assuming an annual discount rate of 11%, what is the present value of the cash flows to be produced by the lease?
| A. | $51,326 | |
| B. | $59,008 | |
| C. | $609,197 | |
| D. | $50,766 | |
| E. | $56,351 |
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