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Assume you will receive rent payments over a time period of 88 years For the first 44 years you will receive a rent of $444 at the beginning of each year For the next 44 years thereafter you will

Assume, you will receive rent payments over a time period of 88 years For the first 44 years, you will receive a rent of $444 at the beginning of each year For the next 44 years thereafter you will receive $222 at the end of each year Assuming a discount rate of 4% calculate the net present value of this income stream 

(a) Employing the equation for identical payments over a limited time period, show how you would alter this equation applied to this problem  (b) Calculate the NPV of the payments

 

Apr 29 2020 View more View Less

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