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Suppose a condo generates $10,000 in cash flows in the first year. If the cash flows grow at 5% per year, the interest rate is
Suppose a condo generates $10,000 in cash flows in the first year. If the cash flows grow at 5% per year, the interest rate is 10%, and the building will be torn down in 20 years (the building is worthless after 20 years), what is the most you would pay for the condo today? Enter your response below (rounded to 2 decimal places). 121295.00 * Correct response: 121, 120.84+10 Suppose instead, the building will be sold at the end of 20 years for $100,000, Using $121, 120.84 as the present value of the rental cash flows, what is the most you would be willing to pay for the condo today? Enter your response below (rounded to 2 decimal places). Number
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