John is considering the purchase of a lot. He can buy the lot today and expects the
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John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to $\$ 15,000$ at the end of 10 years. He believes that he should earn an investment yield of $10 \%$ annually on this investment. The asking price for the lot is $\$ 7,000$. Should he buy it? What is the annual yield (internal rate of return) of the investment if John purchases the property for $\$ 7,000$ and is able to sell it 10 years later for $\$ 15,000$ ?
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