Question
A real estate agent wants you to buy a plot of land today for $60,000 and he promises that you can sell it back to
A real estate agent wants you to buy a plot of land today for $60,000 and he promises that you can sell it back to him in 7 years for $100,000. If you can earn 9% on alternative investments, then what is the present value of the sales proceeds? Is this a worthwhile investment?
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Financial Management
Authors: Geoffrey Knott
4th Edition
1403903824, 9781403903822
