Refer to the Hedonic model for Seattle above table. Suppose you are an investor\ who...
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Refer to the Hedonic model for Seattle above table. Suppose you are an investor\ who has purchased several units of average size and amenities in the Seattle,\ WA. The units do not have working dishwashers. Compute the average increase\ in asset value from adding a dishwasher. Assume a rate of return of 8%. This is a\ present value (PV) problem, and you may model the PV of the additional income\ stream as perpetuity. Use two decimal places of accuracy.
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