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Consider a property that is expected to produce a constant

Question: (Bit of a challenge) Consider a property that is expected to produce a constant net operating income (NOI) of $150,000 per year in perpetuity. An investor who is considering purchasing the property plans to hold it for 10 years. The investor expects the property to appreciate by 100% (double in value) over this period. The discount rate is 15%. What is the maximum price an investor should be willing to pay for the property?

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Finance Basics: Consider a property that is expected to produce a constant

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