Question
Consider a piece of land that generates a flow of annual rents equal to $150,000. If the discount rate is equal to 3%, what is
Consider a piece of land that generates a flow of annual rents equal to $150,000. If the discount rate is equal to 3%, what is the present value of the land if you own the land in perpetuity?
a. $5,000,000
b. $500,000
c. $154,000
d. $145,631
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
