Hi all could someone kindly provide working for the following question please: A property developer is considering investing in a project. The project is a special arrangement with a local business that owns an empty office building and is in need of short-term cash. Under the terms of the arrangement the developer will buy the building for £5,000,000. In order to make the building suitable as a business premises he will need to spend £7,000,000 continuously during the first year. At the end of the first year, he will let the property to the business for a further ten years at a fixed annual rent, payable annually in advance. The business will then buy back the property from him at twice the original sale price i.e. £10,000,000. Calculate to the nearest £5,000 the annual rent the developer needs to charge in order to obtain an internal rate of return of 7% p.a. from this project. Answer is 220,000 but can't see how this is correct. Or how the answer was obtained. Any help on this would be very appreciated. Thanks