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An Industrial Park is available for sale for $2,000,000. It is estimated that the investment will produce $200,000 per year for the next 10 years.
An Industrial Park is available for sale for $2,000,000. It is estimated that the investment will produce $200,000 per year for the next 10 years. At the end of 10 years the property will be sold for $3,000,000.
If the investors required rate of return is 15%, will the investor pursue this investment?
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
