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A property owner has set up a contract in which he agrees to sell a warehouse 2 5 years from now to the tenant who
A property owner has set up a contract in which he agrees to sell a warehouse years from now to the tenant who currently leases the space. The tenant has agreed to continue to pay $ in rent at the end of each year, including year at which time he will purchase the building for an additional $ Assuming the required rate of return on a similar investment is annual how much is this deal presently worth to the original owner of the property? Again, for the sake of simplicity express your answer as a positive number.
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