Suppose a condo generates $13,000 in cash flow at the end of year one. If the cash flows grow at 3% per year, the intere
Posted: Sun Jun 05, 2022 7:18 am
Suppose a condo generates $13,000 in cash flow at the end of
year one. If the cash flows grow at 3% per year, the interest rate
is 11%, and the building will be torn down in 15 years (the
building is worthless after 15 years), what is the most you would
pay for the condo today?
year one. If the cash flows grow at 3% per year, the interest rate
is 11%, and the building will be torn down in 15 years (the
building is worthless after 15 years), what is the most you would
pay for the condo today?