Multiple Choice
You inherited a run-down house in Chicago. There is an active market in properties of this type, and similar properties currently sell for $100,000. If rented, the property can deliver cash returns of $12,000 per year forever. If the appropriate discount rate is 15 percent, how much is the house worth?
A) $80,000
B) $100,000
C) $150,000
D) $180,000
Correct Answer:
Verified
Correct Answer:
Verified
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