Question
An investor is considering a potential investment that can be purchased for $650,000 and yields $75,000 in annual income. If the investment can be
An investor is considering a potential investment that can be purchased for $650,000 and yields $75,000 in annual income. If the investment can be sold for $950,000, how much of the value is attributed to the income and how much is attributed to the reversion, assuming a discount rate of 15% and a five-year holding period?
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Engineering Economic Analysis
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
9th Edition
978-0195168075, 9780195168075
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