You own an apartment complex renting to students, choose between these lease terms Rent free for first month and then $525 per month for months 2 to 12 Rate of return is 12 Charge a fixed monthly rent of $450 for the year Rate of return is 10 Questions (1) Compare their present values, note the ren...

Comparing Lease Options for Apartment Complex 1 Present Value Comparison Option A RentFree First Mon ...

You own an apartment complex renting to students, choose between these lease terms: Rent free for first

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You own an apartment complex renting to students, choose between these lease terms:

Rent free for first month and then $525 per month for months 2 to 12. Rate of return is 12%.
Charge a fixed monthly rent of $450 for the year. Rate of return is 10%.

Questions: (1) Compare their present values, note the rent is earned when the service is delivered

(2) What is the effective rent for A? Note the rent is earned when the service is delivered.

Related Book For answer-question

ISE Real Estate Finance And Investments

ISBN: 9781264892884

17th International Edition

Authors: Jeffrey Fisher William B. Brueggeman

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Posted Date: Mar 04, 2024 03:39 AM

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You own an apartment complex renting to students, choose between these lease terms: Rent free for first

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