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Please do not use excel. You have been asked to evaluate an...

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Finance

imagePlease do not use excel.
You have been asked to evaluate an investment of purchasing a parking lot under the following conditions: 3. The proposal is for a parking lot costing $4,000,000. The deck has an expected useful . The tenants have recently signed long-term leases, which leads you to believe that the life of 15 years and a net salvage value of $625,000 (after tax adjustment). current rental income of $250,000 per year will remain constant for the first five years, then the rental income will increase by 10% for every five-year interval over the remaining asset life. The estimated operating expenses, including income taxes, will be $65,000 for the first year, and will increase by $6,000 each year thereafter. If you had the opportunity to invest your money elsewhere and thereby earn annual interest rate at 15%, justify the investment using the NPW method

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