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Score: 0 of 1 pt 1 of 7 (6 complete) HW Score: 68.57%, 4.8 of 7 .. P18.1 (similar to) Question Help 0 Stan Marsh,
Score: 0 of 1 pt 1 of 7 (6 complete) HW Score: 68.57%, 4.8 of 7 .. P18.1 (similar to) Question Help 0 Stan Marsh, an investor, is considering two financing plans for purchasing a parcel of real estate costing $151,695. Alternative 1 involves paying cash; alternative 2 involves obtaining 81% financing at 9.2% interest. If the parcel of real estate appreciates in value by $16,648 in 1 year, calculate (a) Stan's net return and (b) his return on equity for each alternative. If the value dropped by $16,648, what effect would this have on your answers to parts a and b? a. If the parcel of real estate appreciates in value by $16,648 in 1 year, Stan's net return on alternative 1 is $ (Round to the nearest dollar.)
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