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Assume that a commercial real estate whose monthly rent is USD 6.000 is to be sold at USD 4.000.000 Inflation rate has been 10% and

Assume that a commercial real estate whose monthly rent is USD 6.000 is to be sold at USD 4.000.000 Inflation rate has been 10% and the nominal interest rate 16% on the average for the last 15 years. The economy has grown at a real rate of 4% over the same period, so have rental revenues. If an investor has adaptive expectations, should he/she buy the real estate or not? Explain why.

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