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Question 2 Answer this question in the spreadsheet (Q2). A property development company, ABCo, has just bought a retail outlet for 4,000,000. A further 900,000

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Question 2 Answer this question in the spreadsheet (Q2). A property development company, ABCo, has just bought a retail outlet for 4,000,000. A further 900,000 will be spent refurbishing the outtet in 6 -months' time. An agreement has been made with a prospective tenant who will occupy the outet beginning one year from now. The tenant will pay rent to ABCo for five years and at the end of that period buy the outlet from ABCo for 7,000,000. The initial rent will be 360,000 per annum, which will increase by 3.0% per annum (compound) at the start of each successive year. The rental income is to be paid to ABCo quarterfy in advance. ABCo does not have enough capital to fully cover the refurbishment costs, so decides to borrow 500,000 from the bank. The loan will be repaid over 5.5 years with level repayments made quarterly in arrears. The bank quotes a nominal interest rate of 6% per annum (convertible quarterly). ABCo's required rate of return is an effective annual rate of interest of 12%. (a) Enter the appropriate values in the input section (shaded green)

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