Question: Capital Yield - $770(Rent is compared with other properties in the same area and features)(rent/week) x 52 = $40,040 (annual rent) $40,040 $1,555,626(Price of Property)

Capital Yield - $770(Rent is compared with other properties in the same area and features)(rent/week) x 52 = $40,040 (annual rent)

$40,040 $1,555,626(Price of Property) = 2.57% +3.9%(GDP growth) = 6.47%(Discount Rate)

-Management fees = 6%

Property 2

Capital Yield - $750(Rent is compared with other properties in the same area and features)(rent/week) x 52 = $39,000 (annual rent)

$39,000 $1,084,900(Price of Property) = 3.59% + 3.9%(GDP growth) = 7.49%(Discount Rate)

-Management fees = 6%

PLEASE find discounted cash flow for 6 years, IRR and NPV

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