Question
Using a discounted present value model of house prices, is it worth carrying out a renovation costing $30,000 if it raises the monthly rental price
Using a discounted present value model of house prices, is it worth carrying out a renovation costing $30,000 if it raises the monthly rental price by $200 where the depreciation rate is 2%, the tax rate is 1%, the real risk free rate is 1%, and the expected real growth rate of rents is 1%?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
