Future Value of a Lease(Posted by tigerfan102 on 11/13/13 at 11:08 am)
Was hoping someone on the money board could help me with a time value of money explanation. I'm not well versed in finance. I am trying to determine the value of a lease that is being bought out. For example purposes lets assume the lease has 20 years left and must account for Inflation, what is the best method for determining a fair price for this lease/property to be purchased at?
Commercial property currently leased to a development company. Property/lease is being purchased. The property value is currently undetermined but I'm looking more for how to determine a value for the lease which has 20 years remaining.