You Purchase a Building for $10,000,000 and Lease It for $2,000,000

Essay

You purchase a building for $10,000,000 and lease it for $2,000,000 a year for four years (i.e., collect annual rent payments). At the end of the four years, you plan to sell the building. If you want to earn 10 percent on your investment, how much must you receive from the sale SOLUTIONS TO PROBLEMS