Ray has been offered a 8-year assignment in Portugal. Hence, he will rent out his four-bedroom house to an old friend. R
Posted: Sun May 29, 2022 7:57 pm
Ray has been offered a 8-year assignment in Portugal. Hence, he
will rent out his four-bedroom house to an old friend. Rental
income will be 13,045 dollars per year but maintenance/repair costs
will be 1,232 dollars in the first year and thereafter increase by
599 dollars per year. The tenant will be doing the
maintenance/repair operations and therefore, at the end of each
year, deposits the annual rent amount net of maintenance costs.
Find the PRESENT value of Ray’s future cash flows given that the
proxy interest rate is 6% per year (annual compounding).
will rent out his four-bedroom house to an old friend. Rental
income will be 13,045 dollars per year but maintenance/repair costs
will be 1,232 dollars in the first year and thereafter increase by
599 dollars per year. The tenant will be doing the
maintenance/repair operations and therefore, at the end of each
year, deposits the annual rent amount net of maintenance costs.
Find the PRESENT value of Ray’s future cash flows given that the
proxy interest rate is 6% per year (annual compounding).