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You are considering a luxury apartment building project that requires an investment of $ . The building has units. You expect the maintenance cost for
You are considering a luxury apartment building project that requires an investment of $ The building has units. You expect the maintenance cost for the apartment building to be $ the first year and $ the second year. The maintenance cost will continue to increase by $ in subsequent years. The cost to hire a manager for the building is estimated to be $ per year. After five years of operation, the apartment building can be sold for $ What is the annual rent per apartment unit that will provide a return on investment of Assume that the building will remain fully occupied during its five years of operation.
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