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Apartment Cost : $500,000 Useful Life : 10 years Salvage Value: depreciation $800,000 Annual Cash flow (from savings): $22,000, after year 5 it went up
Apartment Cost : $500,000 Useful Life : 10 years "Salvage Value": depreciation $800,000 Annual Cash flow (from savings): $22,000, after year 5 it went up to $25,000 Discount rate: 8% In year 5: Paint Cost $10,000 Questions: 1.Should I buy the apartment ? 2. Discuss discount rate at 8% 3.Your opinon about IRR
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