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A property, if sold today, will provide the equity investor with $250,000 in cash flow after taxes. If the property is held, the annual after-tax cash flow recieved by the investor will be $23,000 per year for 1 to 5. If held and sold in 5 years, the property is expected to provide $300,000 in after- tax cash flow investor. what should be investor do if he can receive 10% rate of return by investing the sales proceeds today in different project?

What is the anticipated rate of return if held for 5 more years?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92880880

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