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Stu can purchase a house today for $110,000, including the cost of some minor repairs. He expects to be able to resell it in one

Stu can purchase a house today for $110,000, including the cost of some minor repairs. He expects to be able to resell it in one year for $129,000 after cleaning up the property. At a discount rate of 5.5 percent, what is the expected net present value of this purchase opportunity?


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