The present equivalent of the rental income equals

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Suppose that annual income from a rental property is expected to start at ?$1,300 per year and decrease at a uniform amount of ?$50 each year after the first year for the 12?-year expected life of the property. The investment cost is ?$8,600?, and i is 10?% per year. Is this a good? investment? Assume that the investment occurs at time zero? (now) and that the annual income is first received at EOY one.

The present equivalent of the rental income equals ?

Reference no: EM131239697

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