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The Expected After-Tax Cash Flow from an Investment Property That

Question 104

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The expected after-tax cash flow from an investment property that you are considering is
Year 1 $25,000
Year 2 $27,500
Year 3 $30,250
At the end of year 3 you expect to sell the property for $400,000. If the appropriate discount rate is 12%, what is the most you should pay for this property?

Correct Answer:

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[25000/(1.12)1 +2750...

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