What is the maximum price you should pay today for the right to receive $20,000 per year for 10 years
June 7th, 2024
What is the maximum price you should pay today for the right to receive $20,000 per year for 10 years for a piece of commercial real estate if the series of rental payments is discounted at a 7 percent annual rate? Assume the property will be worth $125,000 at the end of the 10-year period.