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In the year 2020, a real estate analyst forecasts that a rental apartment building will generate $5 million each year in rent over the five

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In the year 2020, a real estate analyst forecasts that a rental apartment building will generate $5 million each year in rent over the five years 2021-2025. Cash expenses are expected to be $4.2 million a year for the first four years and then increases to $4.8 million in the fifth year. At the end of five years, the building is expected to sell for $12 million. The real estate investors require a 12% return on their investments (WACC) Building acquisition cost is $5 millions. What is value added from acquisition of this building

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