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Charlie is planning to buy a small apartment complex; the complex will cost $1,000,000 and they will generate $450,000 in profits over the next three
Charlie is planning to buy a small apartment complex; the complex will cost $1,000,000 and they will generate $450,000 in profits over the next three years. The complex will also need $50,000 in renovations during year 4. Charlie's required rate of return is 17%. What is the NPV on Charlie's investment ___? and should Charlie purchase the apartments___? yes or no
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