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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 ex ante IRR of the investment if you pay $500,000 today for the property?
Internal Centralized
A management structure where decisions are made by a few key individuals or a central body within the organization.
Support Department
A segment within an organization that does not directly add to profit but provides essential services for other departments.
Profit Center
A segment or department within a business that is responsible for generating its own revenue and profit, assessed separate from other areas of the company.
Revenues
The total amount of money received by the company for goods sold or services provided during a certain time period.
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