A media company buys a property for 2,000,000 euros and generates annual rental income of 500,000 euros. For the property, the operating costs (property tax, energy and other fees and contributions) are paid by the tenants. The annual maintenance expenses for maintaining the value of the property are taken over by the investor and are estimated at 250,000 euros per year. The investor would like to keep the property for 20 years and then sell it again at a price of 1,500,000 euros. The discount rate for the investment calculation should be 5%.

Calculate the investment using all applicable static and dynamic methods (75%).

Also assess the usefulness of the individual methods as an aid in the investment decision (25%).

Answer rating: 100% (QA)

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