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Question 1 A property has a Tesco supermarket) on it, which can earn EBO,000 per year in any other use including another brand of supermarket,
Question 1 A property has a Tesco supermarket) on it, which can earn EBO,000 per year in any other use including another brand of supermarket, the most it can earn is 60,000 per year. Assuming a discount rate of 10% and constant cash flow in perpetuity, what is the investment value of this property to Tesco, and what is its market value"? Options A . Investment is 600,000 and market values is 800,000 B . Both investment value and market value is 800,000 C. Both investment value and market value is 600,000 D. Investment is 800,000and market values is 600,000
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