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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. Suppose that the current owner of the warehouse is offering to sell it for $225,000. If you paid this price, what annual rate of return would you earn on this warehouse expressed as a percentage calculated to two decimal places? Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

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