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You are considering the purchase of real estate that will provide perpetual income that should average $ 5 6 , 0 0 0 per year.

You are considering the purchase of real estate that will provide perpetual income that should average $56,000 per year. How much will you pay for the property if you believe its market risk is the same as the market portfolios? The T-bill rate is 3%, and the expected market return is 12.5%.

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