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b. You have just rented your two apartments for 15 ycars on an annual rent package of GhC4,080 per annum, to be paid in advance.

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b. You have just rented your two apartments for 15 ycars on an annual rent package of GhC4,080 per annum, to be paid in advance. If interest rates average 17%, what is the present value of your rent deal? If the tenant is offering to pay in arrears, what annual instalment would make you indifferent to the timing of the cash flows? [9 marks]

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