You are planning to buy a property. You think that you can sell it in six years for $4,000,000. You also expect to earn rent of $200,000 per year for the first 3 years and $250,000 per year for the following 3 years. The interest rate is 8%. How much are you ready to pay?

I do not understand why PVAnnuity 1 of 200K and PVAnnuity 2 of 250K had to be discounted once more to get present value 1/1.08^3.does the formula for PVA not already discount it to what it was year 0? I dont understand why we are doing it a second time

Answer PV of two annuities plus the PV of 4M 24