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13 April 2017
DLF is building a block of 5 flats with a purpose to let out these at annual rental. the total cost of project is estimated to be 40L in terms of the price of the date when the flats will be ready for let out. the life of the flat may be taken at 25 yrs. what should be the minimum annual rental charged by the DLF for the first yr given that
(i) Appreciate money discount rate is 18.8℅
(ii) Annual lease rental will increase in line with the general inflation rate of 10% p.a.
13 April 2017
please suggest me how to calculate annual rental
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