You have been asked by a friend to value her recent financial investment in a property that she has acquired and that will now be rented out for the foreseeable future at an annual real rent of £10,200 per annum. She has taken a view that if she had not invested in the property the cost of the next best opportunity for her gives a nominal yield of 14% per annum. The expected inflation rate is 3%. 

What value would you place on your friend’s investment?