You are analyzing the recent purchase of an office condominium unit on a flat lease basis. The property has a level income stream of 10,000 per year for 5 years and you estimate the net resale reversion to be 110,000 and the end of 5 years. 

a) If the purchase price was $95,000, what YO is reflected in the income and resale forecast. 13% 

b) What is delta ∆o ?

c) If the reversion value is $90,000, What is ∆o ?