Question

After working on an office building for 3 years, you are about to sell it for ₹4,20,000. But someone offers to rent it for 8 years for a fixed annual rental of 8,000. At the end of this period, you would be able to sell the building. Your real estate advisor estimates that prices of office buildings will rise by 3% P.A. The discount rate is 5%. Would you sell it right now or wait for 8 years? If you plan to wait for 8 years, will you accept the offer of 8,000 rent P.A. or would you negotiate for a higher amount?​

Answer 1

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