I have the opportunity to buy an apartment complex. The apartment complex has a useful life of only 3 years.

The owner of the apartment complex will sell it to me for $70,000.

If I buy the apartment complex, I can collect rent payments (cash inflows) of $30,000 per year (assume at the end of each year) for the next 3 years.

Other than the $70,000 purchase price, there will be No Other Cash Outflows during the 3 year period.

But, other than the rent payments, there will be No Other Cash Inflows during this 3 year period.

Assume that investments of like risk are paying 15%.

What should I do?

Should I buy it or Not buy it?

PLEASE SHOW ALL WORK WITHOUT USING EXCEL OR DRAWING CHART. NEED TO LEARN THIS WITH FORMULA

NOTE: I've seen this problem posted before answered used excel / chart style answer which taught me nothing

Cheer's