You are evaluating an income generating property. Net rent is received at the end of each year.
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Question:
You are evaluating an income generating property. Net rent is received at the end of each year. The first year's rent is $8,500 (paid at the end of the year), and rent is expected to increase 7% each year. What is the present value of the income stream over the first 5 years if the discount rate is 12%? What if the property begins generating $8,500 at the beginning of the first year, and the rent increases by 7% each year (payable at the end of each year)?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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