Solution-What is the next present value

What is the next present value

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Reference no: EM133066707

Show all work. The answer must include PAINFGP = Present value (this value is not used in this problem) and the cash flow diagrams.

A = Annuity; this is the value that is given in this problem

i = Effective interest raten = Number of payments

F = Future value; this is the value that we want to find in this problem (F = ?)G = Gradient value (this value is not used in this problem)

If a $200,000 building Jensen owns in Cleveland is expected to increase in value by 2% per year, but inflation is 3%/year, what is the next present value of the building in 10 years?

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What is the next present value

Reference no: EM133066707

Reference no: EM133066707

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