Give a general expression for the market value of a property

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Reference no: EM132071363

Question : Rents and market values are closely related.

a. Give a general expression for the market value of a property that promises to yield a series of after tax rents, r1, r2, r3, r4,

b. Consider a vacant acre of land that currently rents for $5000 per year after taxes. Your discount rate is 10%. What should be the market value of this parcel?

Reference no: EM132071363

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