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part 1 and 2 plz Mountain Ridge Properties is evaluating a real estate Investment of Ocean Park Estates Management plans to buy the property today
part 1 and 2 plz
Mountain Ridge Properties is evaluating a real estate Investment of Ocean Park Estates Management plans to buy the property today and sell it 7 years from today. The initial cost of the property is $19 million and the expected sale price is $54 million. What is the IRR of the investment? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer. Enter your response below. Number % Because of its age, your car costs $11,500 annually in maintenance expense. You could replace it with a newer vehicle costing S10,300 that would be expected to have a life of 3 years. If your opportunity cost of capital is 5%, by how much must maintenance expense decrease on the new vehicle to justify its purchase? $ Number (please round your final result to 2 decimals, but keep as many decimals as possible during calculation) Step by Step Solution
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