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A real state investment is expected to return to its owner $4500 per year for 26 years at the end of year 26 after expenses.
A real state investment is expected to return to its owner $4500 per year for 26 years at the end of year 26 after expenses. At the end of year 26, the property is expected too be sold for $69,000. Assuming the required rate of return is 10% for investments with this drgree of risk,
what is the net present value of this property if the purchase price is $28,000 today?
In the previous previous problem, which statement best describes the internal rate of return (IRR) of the investment?
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