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Consider two real estate assets: Property A: The tenant pays N O I 1 = $ 1 0 , 0 0 0 , growing at

Consider two real estate assets:
Property A: The tenant pays NOI1=$10,000, growing at growth rate g=3%, with cap rate
CapRate =8%.
Property B: The tenant pays NOI1=$10,000, growing at growth rate g=3%, with cap rate
CapRate =8%. Unlike Property A, this property is liable for an annual local tax of $1,000.
Fortunately, this tax will apply only for years 1 to 10.
What is the difference, in $, between the market values of the two properties?
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