Question

Vidhi is investing in some rental property in Collegeville and is investigating her income from the investment. She knows the rental revenue will increase each year, but so will the maintenance expenses. She has been able to generate the data that follows regarding this investment opportunity. Assume that all cash flows occur at the end of each year and that the purchase and
sale of this property are not relevant to the study. If Vidhi’s MARR = 6% per year, what is the FW of Vidhi’s projected net income?

Year Revenue Year Expenses
1
$6,000
1
S3,100
6,200
2
3,300
3
6,300
3
3,500
4
6,400
4
3,700
5
6,500
3,900
6,600
6,700
6,800
6
6,100
7
7
4,300
8
8
4,500
9.
6,900
9
4,700
10
7,000
10
4,900
Expand
Transcribed Image Text

Year Revenue Year Expenses 1 $6,000 1 S3,100 6,200 2 3,300 3 6,300 3 3,500 4 6,400 4 3,700 5 6,500 3,900 6,600 6,700 6,800 6 6,100 7 7 4,300 8 8 4,500 9. 6,900 9 4,700 10 7,000 10 4,900

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