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John plans to buy a freehold property from secondary market for investment purpose. The property able to generate RM 1,200 per month. The required rate

John plans to buy a freehold property from secondary market for investment purpose. The property able to generate RM 1,200 per month. The required rate of return and inflation rate are 10% and 3% respectively. Assume 5% annual review. Calculate the property value if John intends to buy the property for long term investment

A. RM 288,000 B. RM 205,714 C. RM 144,000 D. RM480,000

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