Find the amount of rent that end of each year to break even

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David Beckham has bought a house for $250,000, of which $50,000 is the value of the land. Beckham expects that the value of the property will increase at the compound rate of 4% per year. He will rent the house for the next five years and then sell it. He will depreciate the house uniformly over 25 years. The income tax rate of Beckham is 30%, and the risk-adjusted discount rate is 12%. The annual expenses on the property (real estate taxes, maintenance, etc.) are $6000, realized at the end of each year. Find the amount of rent that Beckham must collect at the end of each year to break even. PLEASE SHOW HOW TO WORK IN EXCEL

Reference no: EM13948576

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