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Corporate Finance Question You are thinking about purchasing a new building, where you can rent out 10 apartments. You have estimated that this should bring

Corporate Finance Question

You are thinking about purchasing a new building, where you can rent out 10 apartments. You have estimated that this should bring you $200,000 in perpetual income each year. How much should you pay for such property, if you think that the market risk of this investments is the same as the market portfolio? Assume that treasury bills would provide a return of 5%, and the expected market return is 10%.

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