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Armor Investment Company is considering the acquisition of a heavily depreciated building on 1 0 acres of land. It expects to rent the building as
Armor Investment Company is considering the acquisition of a heavily depreciated building on acres of land. It expects to rent the building as a storage facility and expects to collect cash flows equal to $ next year. However, because depreciation is expected to increase, Armor expects cash flows to decline at a rate of percent per year indefinitely. Armor expects to earn an IRR on investment return r at percent.
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