An Industrial Park is available for sale for $2,000,000. It is estimated that the investment will produce $200,000 per year for the next 10 years. At the end of 10 years the property will be sold for $3,000,000.

If the investors required rate of return is 15%, will the investor pursue this investment?

Answer rating: 100% (QA)

The required rate of return is the minimum return that an investor expects to receive from an invest... View the full answer