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A property could be sold today to provide an after-tax cash fow from sale of $750,000. The current after-tax cash flow from operations is $35,000,

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A property could be sold today to provide an after-tax cash fow from sale of $750,000. The current after-tax cash flow from operations is $35,000, which is expected to grow by 2.5% per year. If sold next year, the property is expected to provide an after-tax cash flow of $778,000. What is the marginal rate of return for holding the property for an additional year? 4.61% 8.52% 5.87% 2.96% 3. 50%

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