Sairah purchased an investment property for $450,000, 2 years ago. The after-tax cashflow of the...
90.2K
Verified Solution
Link Copied!
Question
Finance
Sairah purchased an investment property for $450,000, 2 years ago. The after-tax cashflow of the property has been $45,000 per year to date, but market conditions have improved and Sairah expects the cashflow to improve to $88,000 per year for the next 20 years (assume these are year end cashflows and the property will be worthless thereafter). The annual cost of capital (or cap rate) for this area is 8%. What is the value of the property today?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.