Problem:
A rental property is providing 13% rate of return. Next year's rent is expected to be $1.0 million and is expected to grow at 3% per year forever.
Requirement:
Question: What is the current value of the property?
a. 7.7 million
b. 10 million
c. 33.3 million
d. none of these
Note: Please show guided help with steps and answer.