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You have decided to invest in a warehouse that is currently being rented out for $ 3 5 , 0 0 0 per year for

You have decided to invest in a warehouse that is currently being rented out for $35,000 per year for the next 5 years with rent paid at the beginning of each year. After the 5 year lease expires, you expect to be able to raise the rent by 3% per year with annual payments at the beginning of each year for the next 10 years. What annual rent will you be earning at the beginning of the 15th year to the nearest cent? Continue using the data from problem 11. If you require an 11% return on your investment for this warehouse, and you plan on selling the warehouse for $500,000 at the end of the 15th year, what is the maximum price that you would be willing to pay for this warehouse today to the nearest cent? Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

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