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Applying Time Value

You can buy property today for $3 million and sell it in 5 years for $4 million (you earn no rental income on the property). Is the property investment attractive toyou and if not, would it become attractive is you could also earn $200,000 per year rent on the property?
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Answer #1

ou can buy property today for $3 million and sell it in 5 years for $4 million (you earn no rental income on the property).

Is the property investment attractive to you ------NO

if not, would it become attractive is you could also earn $200,000 per year rent on the property? YES

answered by: Liath
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