For the Following Two Questions: Suppose an Office Building Has

question 6

Multiple Choice

For the following two questions: Suppose an office building has a single tenant who pays $50,000 per year at the end of each year in a 5-year triple-net lease annual payments) . At the end of the sixth year you expect the rent to rise to $70,000 per year. At the end of 10 years, just after collecting the rent for that year, you expect to sell the building for 10 times the rent that year.
-What is the value of the property if the required initial return is 12 percent per year?

• A) $44,643
• B) $416,667
• C) $548,801
• D) $583,333
• E) $770,000

---

Definitions:

David McClelland

is known for his work on achievement motivation, including the theory that people are motivated by the need for achievement, power, and affiliation.

Need Achievement Theory

A psychological theory that explores motivation and focuses on how an individual's need for achievement influences their behavior and performance.

TAT

Thematic Apperception Test, a projective psychological test that involves creating stories about ambiguous scenes and images, used to uncover a person's underlying thoughts, motives, and feelings.

Achievement Motivation

A drive within individuals to set and accomplish goals, often fueled by a desire for success and recognition.