Five years ago the following ground lease was signed. What must the leased fee sell for today to yield 13% if the reversion at the end of the lease is $5,000,000 and income is in arrears? Solution Years of Lease Annual Net Income Annuity factor Present Value 1 through 5 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 90,000.00 3.517231 Â Â 316,550.81 6 through 10 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 120,000.00 1.909012 Â Â 229,081.47 11 through 15 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 150,000.00 1.036135 Â Â 155,420.30 16 through 20 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 180,000.00 0.562373 Â Â 101,227.10 leased fee sell for today to yield 13% Â Â 802,279.68 year PV Factor Total 1 0.88495575 2 0.78314668 3 0.69305016 4 0.61331873 5 0.54275994 3.517231 6 0.48031853 7 0.42506064 8 0.37615986 9 0.33288483 10 0.29458835 1.909012 11 0.26069765 12 0.23070589 13 0.2041645 14 0.18067655 15 0.15989075 1.036135 16 0.14149624 17 0.12521791 18 0.11081231 19 0.09806399 20 0.08678229 0.562373 .