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10) I have the opportunity to buy an apartment complex across the street from campus. The apartment complex has a useful life of THREE years.

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10) I have the opportunity to buy an apartment complex across the street from campus. The apartment complex has a useful life of THREE years. The owner of the apartment complex will sell it for $110,000. (In other words, the total cash outflow is $110,000) If I buy the apartment complex, I can collect rent payments (cash inflows) of $50,000 per year (at the end of each year) for the next THREE years. Other than the $110,000 purchase price, there will be no other cash outflows during the THREE year period. Other than the $50,000 cash inflows per year, there will be no other cash inflows during the THREE year period. Assume that investments of like risk are paying 12%, compounded annually. What should I do? A. Don't buy it because it is only worth $117,217 today B. Don't t buy it because it is only worth $106,767. today C. Buy it because it is worth $120,092 today D. Buy it because it is worth $150,000 today E. Buy it because it is worth $133,928 today

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