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If an investor is offered an opportunity to acquire an existing hotel for $10 million and he calculates its future value to be $15 million
If an investor is offered an opportunity to acquire an existing hotel for $10 million and he calculates its future value to be $15 million in 10 years and its present value to be $9 million, he would likely:
a. make the investment b. not make the investment c. change the assumptions and re-calculate the future value d. be indifferent since he would neither make money or lose money on the deal
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