What is the rate of return for the investment

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Reference no: EM131876054

Question: Given three or more of the variables P, A, F, n, find the rate of return, i, for the following:

a) A small retail center will cost $2,750,000 (land and construction). The center will have ten (10) tenants that each pay $2,500 per month in rent. In eight years it is estimated the center can be sold for $1,800,000. What is the expected rate of return for this investment?

b) An alternative development for the land is a parking lot. The land, clearing, and development costs are $200,000. It is anticipated that the land can be sold in ten years for $125,000. Parking revenue is expected to net $25,000 per year. What is the rate of return for this investment?

Reference no: EM131876054

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