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Again, instead of charging $ 3 0 , 0 0 0 each year, assume that you charge the first year's rent $ 1 5 ,
Again, instead of charging $ each year, assume that you charge the first year's rent $ and will grow it at the rate of for years after that.
The maintenance will cost you $ a year.
You will hold the property for years, and sell it for $
The appropriate discount rate is
What kind of cash flow patterns are these? Step by step calculation with formulas.
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