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please show all work and explanations An investor is determining whether to invest $500,000 in a developing a new rental property on Long Island. Her
please show all work and explanations
An investor is determining whether to invest $500,000 in a developing a new rental property on Long Island. Her estimated annual costs are $12,000 and annual revenues are $40,000. a) What rate of return per year will the investor make over a 30-year period ignoring the salvage value? (1 pt.) b) If the property can be sold for $200,000 what is the rate of return? (1 pt.) c) What method should the investor use to consider whether the conceptual investment cost provided is reasonable, and what factors should be considered in determining that cost? (Please use at least 2 references to discuss.) (3 pts.)Step by Step Solution
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