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An apartment property is expected to generate a rental income of $255,000 in year 1...

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Accounting

An apartment property is expected to generate a rental income of $255,000 in year 1 that will grow at an annual rate of 2.5% over the following years. The property will be sold at the end of year 10 for $4.5 million.
1. What is the PV of the propertys 10-year rental income and sale price at the end if the annual discount rate is 8.5%?

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