Question
You can buy property today for $3 million and sell it in 5 years for $4 million (you earn no rental income on the property).
You can buy property today for $3 million and sell it in 5 years for $4 million (you earn no rental income on the property). If the interest rate is 8%, what is the present value of the sales price?
What is the present value of the sales price, if you also could earn $200,000 per year rent on the property?
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Essentials Of Financial Management Text And Cases
Authors: George C Philippatos
1st Edition
0816267162, 978-0816267163
