AMjay Company is currently renting a parking lot for employee and visitor use at an annual cost of $9000, payable on the first of each year. The company has an opportunity to buy the lot for $50000. Maintenance and taxes on the property are expected to cost $2500 annually. Given that the property will be needed for 10 more years, determine what sales price must be obtained at the end of that period in order for Amjay to break even, when the interest is 12 percent.
I know that I have an initial -50k to buy the lot. I also know that because we are buying the lot we dont have to pay rent, so we can say that we save 9k(F/P,12,10) but we pay 2.5k a month in maintenance which is -2500(F/P,12,10), I also know that these + the sales price has to equal 0.
So now I have
-50k + 9k(F/P,12,10) - 2500(F/P,12,10) + salesPrice(F/P,12,10) = 0
but this gives an incorrect answer and I'm not really sure why.