Question: Abeer has received a $ 5 0 0 , 0 0 0 a prize and planning to purchase a house in Jeddah near by the

Abeer has received a $500,000 a prize and planning to purchase a house in Jeddah
near by the beach side. She hopes to make 8% per year on this purchase over an
ownership period of 20 years. The house first cost is $500,000, and she
conservatively expects to sell it for 90% of the purchase price. No annual M&O costs
are considered in the analysis. (a) What is the capital recovery amount? (b) If there
is a real boom in rental real estate 10 years in the future, what sales price is nec-
essary at (year 10) to realize the same expected amount of capital recovery over the
20-year ownership period? b part it should have an ending results =484166
 Abeer has received a $500,000 a prize and planning to purchase

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