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Question 3: Assuming you can purchase a property for $150,000 today and sell the property at the beginning o next year at a price of

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Question 3: Assuming you can purchase a property for $150,000 today and sell the property at the beginning o next year at a price of $155,500, a $5,500 gain, should you purchase the land? Confirm this investment by calculated the Net Present Value of the cash flow if the current lending rate is 3%. (The Net Present Value is the present value of future cash flows minus the present value of the cost of the investment.)

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