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b) A tenant signs a 20-year lease at a rent of $225,000 per annum, with no rent being paid for the first 3 years of

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b) A tenant signs a 20-year lease at a rent of $225,000 per annum, with no rent being paid for the first 3 years of the lease. At the end of the lease (end of year 20) the property is valued at $3,250,000. What is the present value of this investment if the discount rate is 6%? (Show all your workings including the formula). (10 marks)

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