Answer:
Present Value= $45,454.55
Step-by-step explanation:
Giving the following information:
You will get a rent of $50,000 each year.
The discount rate is 10%.
To calculate the present value at time zero of the first rent, we need to use the following formula:
PV= FV/(1+i)^n
PV= 50,000/(1.10)= $45,454.55