You are contemplating the purchase of a building today. Next year net rental will be...
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You are contemplating the purchase of a building today. Next year net rental will be $400,000 which will grow at 4% per year. You believe that in 5 years the office building could be sold for $7.4 million. The appropriate discount rate for investments of this type is 12% What is the most you should be willing to pay for the building today ?
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