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A company purchases a tract of land for $220,000 and expects to resell the land for $40,000 at the end of six years. If the
A company purchases a tract of land for $220,000 and expects to resell the land for $40,000 at the end of six years. If the company expects an annual return of $45,000 over operating costs, and sets up a sinking fund at 4.2% to recover its capital cost, what is the estimated rate of return on the investment? (8.18%) Cannot use Excel.
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