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What is the present value of the investment

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Amy are considering a property that is leased for 15 years. As the lessor Amy would receive $25,000 per year. At the end of the period Amy will receive a lump sum payment of $87,500 and the property reverts to the lessee. At an interest rate of 5%, what is the present value of the investment?

Reference no: EM132420698

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