Should you sell or lease your building

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Reference no: EM131234077

You can sell your building for $200,000.

Alternatively, you can lease out your building. The lessee will pay you $2,000 per month. You will have to budget $700 per month for upkeep, attention, and so on. At the end of the 20-year lease, you expect the building to be worthless, but the land to have a residual value of $150,000.

Your cost of capital is 0.5% per month. Should you sell or lease your building?

Reference no: EM131234077

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