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Wilma and Wilbur Wildcat own a property that produces a first-year net operating income of $24,000. Because of the long economic life of the building,
Wilma and Wilbur Wildcat own a property that produces a first-year net operating income of $24,000. Because of the long economic life of the building, the income is considered as a perpetuity that will grow by 2.5% per year. Using a discount rate of 9.5%, the Wildcats should be able to estimate that the property value is:
options: $276,968 $200,000 $342,857
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