2.12 Lewis Wolff and his investment group bought the Oakland A’s baseball team for $180 million in 2005. Forbes magazine estimated that the team’s net income for that year was $5.9 million. If the new owners believed that they would continue to earn this annual profit (after adjusting for inflation)

forever, was this investment more lucrative than putting the $180 million into a savings account that paid a real interest rate of 3%? (Hint:

See Solved Problems 16.2 and 16.3.) A