In Example 18 of curriculum, Three years ago rent was decided to be 400k, Rent review occurs every 5 yrs. Estimated rental value is 450K. ARY is 5 percent. A lower rate of 4 percent is considered appropriate to discount the term rent because its less risky than the market rent.
Here i am getting confused why is the 400k is discounted for 2 years in the solution given instead of 3 years!
Please help i am very much stuck here since last night. Read multiple times and i am not getting convinced.