How much would an investor be willing to pay for property

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Reference no: EM131813184

Kevin owns a condominium on the gulf coast of Florida. The condominiums generate about $2,000,000 in rent annually. His expenses were $1,500,000. The mortgage payment was $250,000 per year. $200,000 is principal and $50,000 is interest expense. Assuming a 10% required rate of return, how much would an investor be willing to pay for the property?

Reference no: EM131813184

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