Your question: Apartment Cost : $500,000 Useful Life : 10 years "Salvage Value": depreciation $800,000 Annual Cash flow (from savings): $22,000, after year 5 it went up to $25,000 Discount rate: 8% In year 5: Paint Cost $10,000 Questions: 1.Should I buy the apartment ? 2. Discuss discount rate at 8% 3.Your opinon about IRR