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Jose is thinking purchasing a small real estate project. The listing price is $200000. Jose's best estimate of teh after tax cash flows is $30000
Jose is thinking purchasing a small real estate project. The listing price is $200000. Jose's best estimate of teh after tax cash flows is $30000 in years 1-5 and $36000 in years 6-10. Also he plans to sell the property at the end of 10 years for 300000 after tax. If Jose requires a 16% rate of return, what is the project worth?
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