Question
A person is investing in some rental property and is investigating her income from the investment. She knows the rental revenue will increase each year,
A person is investing in some rental property and is investigating her income from the investment. She knows the rental revenue will increase each year, but so will the maintenance expenses. She has been able to generate that data that follow regarding this investment opportunity. Assume that all cash flows occur at the end of each year and that the purchase and sale of this property are not relevant to the study. If the MARR is 6% per year, what is the future worth of the projected net income?:
End of year : Revenue : Expenses
1 : $6,100 : $3,100
2 : $6,200 : $3,300
3 : $6,300 : $3,500
4 : $6,400 : $3,700
5 : $6,500 : $3,900
6 : $6,600 : $4,100
7 : $6,700 : $4,300
8 : $6,800 : $4,500
9 : $6,900 : $4,700
10 : $7,000 : $4,900
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