You have the opportunity to purchase an office building for $350,000 now. You want to operate the office building forever and you have a tenant lined up that will generate $55,000 cash inflows per year forever. Suppose the interest rate (r) is 15%

1. Calculate this investments NPV. By using the NPV rule, do you want to take this investment?

2. Calculate the investments IRR. By using the IRR rule, do you want to take this investment?

3. Calculate the payback period. By using the payback rule, do you want to take this investment? Suppose the pre-set cutoff period is 5 years.