Present Value [3062]

Home  Previous  Next

A property is leased on a net basis for $30,000 per year for 20 years. Market rent is $25,000.  If the appropriate discount rate is 10% and the expected value at the end of the lease is $40,000, what is the value of the leased fee?

 

Column

Rate

Years

Amount

Factor

Value

4

10.0%

20

$40,000

0.148644

$5,946

5

10.0%

20

$30,000

8.513564

$255,406.91

 

 

 

 

 

$261,352.66


Georgia Appraiser Home Page | Reload