Ashley projects that she can get $190,000 cash per year for 5 years on a real estate investment project. If Ashley wants to earn a rate of return of 10%, what is the maximum that she should pay for the investment?(PV of $1and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest dollar.)
A) $123,487
B) $615,547
C) $720,250
D) $864,500
Correct Answer:
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