Present equivalent of the rental income equals

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Suppose that annual income from a rental property is expected to start at?$1,250?per year and decrease at a uniform amount of?$50?each year after the first year for the?17-year? expected life of the property. The investment cost is $7,000,?and is 9% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one. The present equivalent of the rental income equals? (round to the nearest dollar)

Reference no: EM13739594

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