What is the rate of return-define the goal or objective

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Reference no: EM13804426

An investor has invested $250,000 in a new rental property. Her estimated annual costas are $6,000 and annual revenues are $20,000. What rate of return per year will the investor make over a 30-year period ignoring the salvage value? If the property can be sold for $200,000 what is the rate of return?

1. State the problem or opportunity

2. Define the goal or objective

3. Delineate the feasible alternatives

4. Select the criterion (PW or NPV, AW, RoR)

5. Summarize the relevant data

6. Predict the outcomes for each alternative

7. Recommended course of action (i.e., the best alternative)

Reference no: EM13804426

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