Multiple Choice
A rental property is providing an acceptable market rate of return of 13 percent. You expect next year's rent to be $1 million and that rent is expected to grow at 3 percent per year forever. What is the current value of the property?
A) $7.7 million
B) $10.0 million
C) $33.3 million
D) $50.0 million
Correct Answer:
Verified
Correct Answer:
Verified
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