Exercise 3-4 Net present value method III Suppose that an investor plans to buy land. Three plots
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Exercise 3-4 Net present value method III Suppose that an investor plans to buy land. Three plots of land could be acquired. They are characterised by the following financial details:
Land I Land II Land III Initial outlay €45,000 €50,000 € 95,000 Sales value after year 10 € 80,000 € 60,000 € 175,000 State the reason for your evaluation of the purchase using the net present value method (discount rate 4 %). What is your investment decision advice?
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Fundamentals Of Investment Appraisal: An Illustration Based On A Case Study
ISBN: 218025
1st Edition
Authors: Röhrich, Martina
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