A Property Owner Has Set Up a Contract in Which

question 19

Multiple Choice

A property owner has set up a contract in which he agrees to sell a warehouse 5 years from now to the tenant who currently leases the space. The tenant has agreed to continue to pay $20,000 in rent at the end of each year, including year five, at which time he will purchase the building for an additional $1,500,000. Assuming the required rate of return on a similar investment is 10% (annual) , how much is this deal presently worth to the original owner of the property?

• A) $1,007,197.20
• B) $1,014,779.29
• C) $2,281,452.80
• D) $2,293,663.00

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Definitions:

Computer Virus

Malicious software designed to replicate itself and spread from one computer to another, often causing damage or stealing information.

Worm

A type of malware that replicates itself to spread to other computers, often causing harm by consuming bandwidth or corrupting files.

Spear Phishing

A targeted phishing attack that sends e-mails to people known to be customers of a company. Such attacks have a much greater chance of successfully getting individuals to reveal sensitive data.

Rootkit

A rootkit is a type of malware designed to gain unauthorized access to a computer system while hiding its presence or the presence of other malicious software.