Mrs. Kobe owns 2 acres of freehold commercial land in New Jersey. She leased the land to Mr. Chris at a dollar of 120,000 per acre/per annum for a period of 15 years. Mr. Chris then sub-leased the land to Mr. Shang Chi for a period of 10 years with a rate of payment at dollar 50,000 per acre/per annum. The rate of return for the same properties is 7% per annum and sinking fund at 3%.
Estimate the income gathered from this investment to Mrs. Kobe and Mr. Chris.
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