Vidhi is investing in some rental property in Greendale and is investing her inc

Question

Vidhi is investing in some rental property in Greendale and is investing her income from the investment. She knows the rental revenue will increase each year, but sol will the maintenance expenses. She has been able to generate the data that follow regarding this investment opportunity. For this problem: Assume that all cash flows occur at the end of year. That the purchase sale for this property is not relevant to the study. If Vhidhi's MARR = 6% per year, what is the future worth of Vidhi's projected net income?

Explanation / Answer

Future Worth of Vidhis projected net income

=(6000-3100)*(1+6%)^9+(6200-3300)*(1+6%)^8+(6300-3500)*(1+6%)^7+(6400-3700)*(1+6%)^6+(6500-3900)*(1+6%)^5+(6600-6100)*(1+6%)^4+(6700-4300)*(1+6%)^3+(6800-4500)*(1+6%)^2+(6900-4700)*(1+6%)^1+(7000-4900)*(1+6%)^0

Future Worth of Vidhi's projected net income= $31547.16

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