You are considering a property that is leased for 15 years, Financial Management

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You are considering a property that is leased for 15 years

You are considering a property that is leased for 15 years. As the lessor you would receive $27,000 per year. At the end of the period you will receive a lump sum payment of $87,500 and the property reverts to the lessee. At an interest rate of 4%, what is the present value of the investment?

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Financial Management: You are considering a property that is leased for 15 years

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Financial Management: You are considering a property that is leased for 15 years

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