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Raul Martinas, a prolessor d languages at Eastem University, owns a small ofice building adjacent to the university carrpus. He acquired ihe property 10 years
Raul Martinas, a prolessor d languages at Eastem University, owns a small ofice building adjacent to the university carrpus. He acquired ihe property 10 years ago at a tatal cost of \\( \\$ 608,500 \\) - that \\( 15, \\$ 78,500 \\) for the land and \\( \\$ 530,000 \\) for the bulliding. He has just recelved an offer fram a realty company that wams to purchase the property, howevex, the prapenty has been a gocd source of income over the years, and so Martinas is unsure whether he should keep it or sell it. His alternatwes are as follows: a. Keep she maperty. Martinst's accountant has kex careful recards of the income realized from the property ove the past 10 years. These reconds indcate the following annual revenues and expenses; Marinas makes a \\( \\$ 13,250 \\) mongage payment each year on the propeny. The mortgage will be pald aft in eight mare years. He has been depredating the bulling by the straight-line method, assuming a salvage value of \\( \\$ 79,500 \\) far the bulling. Which he still thinks is an appropriate figure. He feels sure that the building can be rented for anather is years He also reels sure that 15 years fram now the land will be wanh three times what he pald for it. mongage oft which couid be done by making a lump-sumpayment \\( \\alpha \\) s \\( \\$ 122000 \\) Required: Would you recormencticl he keep or sell the propenty? Kepthe propert: Sell the propenty
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