(4) Assume, you will receive rent payments over a time period of 88 years.
For the first 44 years, you will receive a rent of $444 at the beginning of each year.
For the next 44 years thereafter you will receive $222 at the end of each year.
Assuming a discount rate of 4% calculate the net present value of this income stream.
(a) Employing the equation for identical payments over a limited time period, show how you would alter this equation applied to this problem.
(b) Calculate the NPV of the payments