You inherited a run-down house in Chicago. There is an active market in properties of this type, and similar properties currently sell for $100,000. If rented, the property can deliver cash returns of $12,000 per year forever. If the appropriate discount rate is 15 percent, how much is the house worth?
A)$80,000
B)$100,000
C)$150,000
D)$180,000

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The Answer of You inherited a run-down house in Chicago. There is an active market in properties of this type, and similar properties currently sell for $100,000. If rented, the property can deliver cash returns of $12,000 per year forever. If the appropriate discount rate is 15 percent, how much is the house worth?
A)$80,000
B)$100,000
C)$150,000
D)$180,000

You Inherited a Run-Down House in Chicago