Suppose that annual income from a rental property is expected to start at $1,330 per year and decrease at a uniform amount of $40 each year after the first year for the 16-year expected life of the...

Extracted text: Suppose that annual income from a rental property is expected to start at $1,330 per year and decrease at a uniform amount of $40 each year after the first year for the 16-year expected life of the property. The investment cost is $8,600, and i is 7% per year. Is this a good investment? Assume that the investment occurs at time zero (now) and that the annual income is first received at EOY one.