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The property is current selling for $400,000. You have forecasted, at the end of the fifth year we will assume the property will (or at
The property is current selling for $400,000. You have forecasted, at the end of the fifth year we will assume the property will (or at least could) be sold for $500,000. If the required rate of return on projects of similar risk is 15%.
What is the net present value (NPV) of this investment project and should it be purchased?
What is the Internal Rate of Return offered by the project?
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