A commercial property is currently being developed and it will generate its first positive cash flow (net operating income) of 50 MSEK two years from today. Thereafter the net operating income will increase with 1% per year in perpetuity. What is the present value of these future net operating incomes if the discount rate is 7%?

Answer rating: 100% (QA)

To calculate the present value of the future net operating incomes we can use the formula for t... View the full answer