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Suppose that you are attempting to negotiate the sale of a commercial property to an investor. If purchased, this property is expected to generate $10,000/year
Suppose that you are attempting to negotiate the sale of a commercial property to an investor. If purchased, this property is expected to generate $10,000/year at the end of each year for the next 5 years in rental operations. Additionally, if purchased, the investor would plan to sell the property at the end of 5 years at an expected sale price of $100,000. If this investor is requiring a 10% return on their investment, how much would the investor be willing to pay for this property today?
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