A firm considering the purchase of forty year old building, the following pertinent
date were provided:
Acquisition Cost	12,000,000
Economic Life (remaining)	10 years
Salvage Value	200,000
Annual rental income	5,000,000
Annual Expense	3,000,000
Net income before tax and depreciation	2,000,000
Depreciation (straight line method)	1,000,000
Income tax (withheld by lessor)	50,000
Average Net annual earnings	950,000
Desire rate of return	25%
Required: Evaluate the proposal using 3 basic method