In the year 2012, a real estate analyst forecasts that a rental apartment building will generate $5.3
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In the year 2012, a real estate analyst forecasts that a rental apartment building will generate $5.3 million each year in rent over the five years 2013- 2017. Cash expenses are expected to be $4.2 million a year. At the end of five years, the building is expected to sell for $12 million. Real estate investors require a 12 percent return on their investments. Apply present value discounting techniques to value the building.
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Related Book For
Financial Statement Analysis and Security Valuation
ISBN: 978-0078025310
5th edition
Authors: Stephen Penman
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