Answered: 2. It is estimated that a stand of…

2. It is estimated that a stand of timber will net P 25,000 a year for the next 10 years and that the land can then be sold for P 15,000. Find a fair price today, money worth 6 %.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 15PROB

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Concept explainers

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.

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2. It is estimated that a stand of timber will net P 25,000 a year for the next 10 years and
that the land can then be sold for P 15,000. Find a fair price today, money worth 6 %.

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