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gproperty could be sold today (year O) to provide an after-tax cash flow from sale of $800, cash flow from o of $824,000 from the

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gproperty could be sold today (year O) to provide an after-tax cash flow from sale of $800, cash flow from o of $824,000 from the sale 000. If sold next year (year 1), the property is expected to generate after-tax w o oations of $24,000 and additionally provide an after-tax cash flow (A) What is the marginal rate of return for holding the property for an additional year and selling at the end of year 1? 824 000 + 20000x | +0,04%))-900 ,000 5.6 (B) As an alternative, the owner can instead forgo the sale and instead improve the property by investing $50,000 in year 0. That will increase the after-tax cash flow from operations to $50,000 per year. A sale at the end of year 3 will generate after tax cash flow from sale of $1,000,000. What is the internal rate of return (IRR) under this scenario

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