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Property Associates (PA) is considering the purchase of an apartment complex. The company has the opportunity to purchase a complex at a cost of $9,000,000.
Property Associates (PA) is considering the purchase of an apartment complex. The company has the opportunity to purchase a complex at a cost of $9,000,000. PA also plans to incur $3,000,000 of renovation cost. The investment is expected to return a net cash inflow of $2,000,000 per year. The payback period for the investment in the complex is
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