Nabil is considering buying a house while he is at university. The house costs $200 000 today. Renting out part of the house and living in the rest over his five years at school will net, after expenses, $2000 per month. He estimates that he will sell the house after five years for $210 000. If Nabil's MARR is 6 percent compounded monthly, should he buy the house? Use annual worth.

Nabil is considering buying a house while he is at university. The house costs $200 000 today. Renting out part of the house and living in the rest over his five years at school will net, after expenses, $2000 per month. He estimates that he will sell the house after five years for $210 000. If Nabil's MARR is 6 percent compounded monthly, should he buy the house? Use annual worth.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use annunal worth !!!
Give typing answer with explanation and conclusion