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4-5- Uncle Wdhur'e trout ranch is now for also for $40 000 Annual property taxes, maintenance, supplies, and so on are estimated to continue to

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4-5- Uncle Wdhur'e trout ranch is now for also for $40 000 Annual property taxes, maintenance, supplies, and so on are estimated to continue to be $3. 000 per year. Revenues from the ranch are expected to be $10. 000 next year and then to decline by $500 per year thereafter through the tenth year. If you bought the ranch, yod would plan to keep it for only 5 years and at that ' time to sell it for the value of the land. which is $15,000.1f your desired annual rate of return in 12% should you become a trout rancher? Use the PW method 4-12. Based on a desired nominal rate of regs! (yield) of 6%, a bond is purchased for $5. . The horn} matures in 2 years and has a stated rate of 12% nominal interest. What is the face value a! the bond? Assume that face value an redemption value are equal. ' . - ' I- 553]! . 5. 54,5\") c. $4,876 6!. 51.652 e. $2,640

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