A realtor found a deal on a housing development and thinks it can be sold for...
A realtor found a deal on a housing development and thinks it can be sold for $257842 in 3 years due to future commercial development. Using an annual discount rate of 5.1%, what is the present value of this land?
Homework Answers
Present value=$257842*Present value of discounting factor(rate%,time period)
=$257842/1.051^3
=$257842*0.861374184
which is equal to
=$222,098.44(Approx).
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