Operation a good investment decision

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A parking garage costing $20,000,000 will have an estimated net annual income of $2,000,000. In 10 years it is estimated the garage can be sold for $15,000,000. what is the expected rate of return? Assume that the interest rate can be represented by the equation i=2.50 + 1.15n 0.5 (Where n=number of years) Would you consider selling the parking garage after 10 of operation a good investment decision? why?

Reference no: EM131943514

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