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The Claussens are considering the purchase of a hardware store. The Claussens anticipate that the store will generate cash flows of $ 7 9 ,
The Claussens are considering the purchase of a hardware store. The Claussens anticipate that the store will generate cash flows of $ per year for years. At the end of years, they intend to sell the store for an estimated $ The Claussens will finance the investment with a variable rate mortgage. Interest rates will increase twice during the year life of the mortgage. Accordingly, the Claussens' desired rate of return on this investment varies as follows:
tableYears
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