X Problem 5-13 (algorithmic) Question Help You are considering the purchase of a parking deck close to your office building. The parking deck is a 15-year old structure with an estimated remaining service life of 25 years. The tenants have recently signed long-term leases, which leads you to believe that the current rental income of $270,000 per year will remain constant for the first five years. Then the rental income will increase by 10% for every five-year interval over the remaining asset life. Thus, the annual rental income would be $297,000 for years 6 through 10, $326,700 for years 11 through 15, $359,370 for years 16 through 20, and $395,307 for years 21 through 25. You estimate that operating expenses, including income taxes, will be $56,000 for the first year and that they will increase by $7,000 each year thereafter. You estimate that razing the building and selling the lot on which it stands will realize a net amount of $200,000 at the end of the 25-year period. If you had the opportunity to invest your money elsewhere and thereby earn interest at the rate of 17% per annum, what would be the maximum amount you would be willing to pay for the parking deck and lot at the present time? Click the icon to view the interest factors for discrete compounding when i = 17% per year. The maximum amount you would be willing to pay for the parking deck and lot at the present time is $thousand. (Round to the nearest whole number.)