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Lucy is planning to buy a small apartment complex; the complex will cost $1,000,000 and it will generate $600,000 in profits over the next three
Lucy is planning to buy a small apartment complex; the
complex will cost $1,000,000 and it will generate
$600,000 in profits over the next three years. The
complex will also need $50,000 in renovations during year 4. Her required rate of return is 15%.
What is the PV on her investment?=
and should she purchase the apartments?
yes or no
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