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Business, 03.12.2019 17:31 yourbakedpotato101

For the following two questions: suppose an office building has a single tenant who pays $50,000 per year at the end of each year in a 5-year triple-net lease (annual payments). at the end of the sixth year you expect the rent to rise to $70,000 per year. at the end of 10 years, just after collecting the rent for that year, you expect to sell the building for 10 times the rent that year. what is the ex ante irr of the investment if you pay $600,000 today for the property?

question options:

a.5.13%
b.10.60%
c.11.40%
d.13.51%

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