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An investor signed a contract to receive a $150,000 payment for the purchase of his warehouse in 5 years from today form the tenant who currently rents the warehouse. The tenant will continue to pay $20,000 rent at the beginning of each year with the first payment in one year from today. The investor’s required rate of return is 10%. What is this deal presently worth to the investor? (hint, pay attention to the number of payments and when they occur)

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