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Please answer q2 1. A property is currently leased for $100,000 p.a. with fully...

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Finance

Please answer q2

1. A property is currently leased for $100,000 p.a. with fully recoverable outgoings. The lease has 3 years to run on the current (fixed) rent. The market rent for the property is $120,000. What is the current value of the property subject to the lease at a yield of 8%? Assume rents are paid annually in arrears. Value was 1,250,000

2. A company has paid a premium of $100,000 for the grant of a 5-year lease of 300 m2 at $400/m2 p.a. paid monthly in advance. What is the equivalent rent at a discount rate of 8%?

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