You are a real estate developer. You have the following investment rule. You will buy a property if the net operating income of the property is

positive. Base your answer to the following question on the information below.

The investment is the price you must pay at time zero $($present$)$ to own the property.

This property meets your investment criteria: time

Net Operating income

discount rate

investment at time $0$

$0$

$15\%$

$$300,000$

$1$

$$45,000$

$2$

$$45,000$

$3$

$$45,000$

$4$

$$45,000$

$5$

$$45,000$

$6$

$$55,000$

$7$

$$55,000$

$8$

$$55,000$

$9$

$$55,000$

$10$

$$55,000$

True

False