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An investor agreed to sell a warehouse five years from now to the tenant who currently rents the space. The tenant will continue to pay
An investor agreed to sell a warehouse five years from now to the tenant who currently rents the space. The tenant will continue to pay $10,000 rent at the end of each year including year 5 in which he will purchase the building for an additional $120,000. Assuming the investor's required rate of return is 10%, how much is this deal presently worth to the investor who was willing to sell?
Enter the answer below as a positive number, no dollar sign, and two decimals.
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