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2. You plan to purchase a rented house which you could rent to earn you an annual income of $12,000. The expected annual expenses

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2. You plan to purchase a rented house which you could rent to earn you an annual income of $12,000. The expected annual expenses of the house are $3,000. You plan to sell the house for $145,000 at the end of ten years. a. Draw a cash flow diagram for this investment if you consider 18% to be a suitable interest rate b. Determine how much you could afford to pay for it now.

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