Question 3 Practice:

You are evaluating an income generating property. Net rent is received at the end of each year. Last rent of $8,500 was just paid, and rent is expected to increase 7% each year. What is the present value of the estimated income stream over the first 5 years if the discount rate is 12%?

Answer: 37135.6963

Please show work with no excel! Thank you! :)