A property was let 2 years ago for a term of 15 years with three five yearly rent reviews for a rent of 1,150,000 p.a.. The current ERV is 2,000,000 p.a. The property has recently been sold for 39.5m. On the assumption that the investor's target rate of return is 6% find the equivalent yield and the capitalisation rate (equated yield method). Explain the limitations of the equivalent yield method and discuss the advantages of the equated yield approach over traditional 'growth implicit' techniques