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Question: You are considering purchase of a properly for 250,000 with a 60,000 down payment. Cash flows will be $4,000 the first year and will grow at 5 percent a year thereafter every year until year 20. The loan balance will be 120,000 at the end of 20 years. For what price must you set the property at end of 20 years to provide an annual return of 12% on your equity investment?

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Category:- Basic Finance
Reference No.:- M92798519

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