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A warehouse is bought for $1 million two years ago. During the following two years, it appreciates 6% per year. It was initially financed at

A warehouse is bought for $1 million two years ago. During the following two years, it appreciates 6% per year. It was initially financed at an 80% loan-to-value ratio for 25 years at 4.6%, with monthly payments. The warehouse was sold after two years with a selling expense of 6%. Find:

1. Net selling price

2. Before-tax equity reversion

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