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problem: The yearly discount rate is 8 percent and you have dollar 1,700,000 to invest.  You may invest your funds that you do not invest at 8 percent.  You have your choice of the following real estate investments. Which one(s) should you select? You may select an investment only once.

 

Cost

Value 5 years from now

a.      Alpha Acres

800,000

1,700,000

b.      Beta Bluff

900,000

1,800,000

c.       Charlie Coast

1,100,000

1,900,000

d.      Delta Delta

700,000

1,300,000

e.      Echo Estuary

600,000

1,100,000

f.        Foxtrot Fairway

400,000

900,000

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M917830

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