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You are considering the purchase of real estate that will provide perpetual income that should average $51,000 per year. How much will you pay for

You are considering the purchase of real estate that will provide perpetual income that should average $51,000 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 4%, and the expected market return is 8.5%.

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