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Professional Artworks, Inc., is a firm that speculates in modern paintings. The manager is thinking of buying an original Picasso for $400,000 with the intention
Professional Artworks, Inc., is a firm that speculates in modern paintings. The manager is thinking of buying an original Picasso for $400,000 with the intention of selling it at the end of one year. The manager expects that the painting will be worth $480,000 in one year. If the interest rate is 10 percent should the painting be purchased? Use the PV approach
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