What is the effective gross income you expect to receive, Finance Basics

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What is the effective gross income you expect to receive

Problem

Tenant A's lease expires in year 5 and you expect them to renew with probability .85. If they do not renew, you expect that it will take about 6 months to find a new tenant for the space. What is the effective gross income you expect to receive in year 6?

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Finance Basics: What is the effective gross income you expect to receive

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Finance Basics: What is the effective gross income you expect to receive

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