Annual income from a rental property is expected

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The annual income from a rental property is expected to start at $1, 800 per year and decrease at a uniform amount of $100 each year after the first year for the 15-year expected life of the property. The investment cost is $9, 500, and the interest is 9% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one.

Reference no: EM131464212

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