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Cindy is going to purchase a rental home. She expected this rental home to generate $21,600 net cash flow for her every year. She plans
Cindy is going to purchase a rental home. She expected this rental home to generate $21,600 net cash flow for her every year. She plans to keep this rental home forever and leave it to her children. What would be the maximum price she is willing to pay for this home if she requires 10% rate of return?
$216,000 A
$240,000 B
$300,000 C
$420,000 D
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