Question: Using the traditional term and reversion approach value a freehold reversion interest which has a term net income of $45,000 for 4 years. Upon reversion,

Using the traditional term and reversion approach value a freehold reversion interest which has a term net income of $45,000 for 4 years. Upon reversion, the owner can revise the rent to a full market net rent of $60,000. The market yield is 7.5%. You have to value the property assuming (a) the yield is not an equivalent yield; and (b) the given yield is an equivalent yield

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