For the following two questions: Suppose an office building has a single tenant who pays $50,000 per year at the end of each year in a 5-year triple-net lease annual payments). At the end of the sixth year you expect the rent to rise to $70,000 per year. At the end of 10 years, just after collecting the rent for that year, you expect to sell the building for 10 times the rent that year.
-What is the value of the property if the required initial return is 12 percent per year?

Question

For the following two questions: Suppose an office building has a single tenant who pays $50,000 per year at the end of each year in a 5-year triple-net lease annual payments).  At the end of the sixth year you expect the rent to rise to $70,000 per year.  At the end of 10 years, just after collecting the rent for that year, you expect to sell the building for 10 times the rent that year. 
-What is the value of the property if the required initial return is 12 percent per year?

Quizplus · Accepted Answer

The Answer of For the following two questions: Suppose an office building has a single tenant who pays $50,000 per year at the end of each year in a 5-year triple-net lease annual payments).  At the end of the sixth year you expect the rent to rise to $70,000 per year.  At the end of 10 years, just after collecting the rent for that year, you expect to sell the building for 10 times the rent that year. 
-What is the value of the property if the required initial return is 12 percent per year?

For the Following Two Questions: Suppose an Office Building Has