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DCF and Reversion Problem Help

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A property is encumbered by a ten-year lease. Based on the following data, what is the present value of the leased fee interest?

Net operating income: $24,000 in Year 1; increasing $1,000 per year
Projection period: 5 years
Property value change: 3% per year increase (compounded)
Yield rate: 10%

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The problem seems unlogical to me.


The first sentence speaks about a lease, so I expect periodic payments.


Later on though, there is information about a periodic income.


I can not reconcile this, in my view contradictory, information with each other.



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