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XYZ Real Estate Company estimates the net income on a property to be $100,000 for the...

XYZ Real Estate Company estimates the net income on a property to be $100,000 for the next year and expected to increase at 5% annually indefinitely. What is the minimum acceptable rental fee for the property (fixed) for a 5 year lease term. Use a discount rate of 12%. Please show written work, with the use of formulas.

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