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3 Merill Co. has additional funds that need to be invested, and is considering purchasing an asset that is expected to return $50,000 per year

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3 Merill Co. has additional funds that need to be invested, and is considering purchasing an asset that is expected to return $50,000 per year after tax for the next 20 years, with no disposal value. Merrill Co.'s required rate of return is 12%. What is the maximum amount that Merrill Co. would be willing to pay to purchase this asset

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