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What is the value of a building that is expected to generate no cash flows for several years and then generate fixed annual cash flows
What is the value of a building that is expected to generate no cash flows for several years and then generate fixed annual cash flows of $93,000.00 per year forever if the first annual $93,000.00 cash flow is expected in 5 years and the appropriate discount rate for the building is 8.20 percent?
$827,484.85 (plus or minus 10 dollars) | ||
$1,134,146.34 (plus or minus 10 dollars) | ||
$764,773.43 (plus or minus 10 dollars) | ||
$1,554,454.95 (plus or minus 10 dollars) | ||
none of the answers are within 10 dollars of the correct answer |
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