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Net present value?


If I purchase a building for 50,000 then rent space for 4 years at $8,000 each year, Then sell it 55,000. did I earn at least a 12% investment.

Yes, you would have earned a 17.92% return. There is a function in Excel that can do this for you (many financial calculators have similar functions).

=IRR({-50000,8000,8000,8000,63000},.12...
The terms to enter are your cash flows (in brackets will input them as an array), and then an initial guess at the solution. Note that the first term in the array is negative denoting your investment, and the last term includes the last year's rent along with the sale of the building.

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