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Suppose you bought a land that costs $500,000 today. You will need to continue to pay tax on the land, and the rate is 3%
Suppose you bought a land that costs $500,000 today. You will need to continue to pay tax on the land, and the rate is 3% of your purchase. Calculate the PV of your payment, using a 10% discount rate. Assume that there are no changes in the lands price and tax rate.
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