How much is this deal presently worth to the investor

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Reference no: EM131912952

An investor agreed to sell a warehouse 5 years from now to the tenant who currently rents the space. The tenant will continue to pay $20,000 rent at the end of each year including year five in which he will purchase the building for an additional $150,000.

Assuming the investor's required rate of return is 10%, how much is this deal presently worth to the investor who was willing to sell??

Reference no: EM131912952

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