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An investor invested $50,000 for the down payment on the purchase of a $300,000 commercial property and financed $250,000 at a rate of 7% for 15 years. Annual after tax cash inflows are expected to be $10,000 a year fot 10 years with an expected resale value of $500,000, resulting in an after tax cash flow from the sale of $160,000. What should be the approximate rate of return on this investment?

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Financial Management, Finance

Category:- Financial Management
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