Problem:
You expect to renovate a building you will pay $760,000 for and will lease it out for 20 years, after which time you estimate you can sell the building for $250,000. You expect the lease to pay you $110,000 per year. Finally, the cost of capital in this case is 13%.
Requirement:
Question: What is the value of the building in today's dollars when you sell it?
Note: Please show guided help with steps and answer.