In summer of 2017 , Bert Matthews was contemplating purchasing a 48 -unit apartment building. The building was 95% occupied and generated $550,000 in annual profit. Investors expected a 15% return on their capital. Mr. Matthews can only afford to pay $5.4 million for the building The bank offered to loan Mr. Matthews 80% of the purchase price at a rate of 5.5% Mr. Matthews computed the cost of capital as a weighted average of equity and debt, as follows: .2(15%)+.8(5.5%)=7.4% Should Mr. Matthews buy the property? Why or why not