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The Tax Museum (TTM) has a large portfolio of different assets, held for investment purposes. But times are changing, and some of the stocks held

The Tax Museum (TTM) has a large portfolio of different assets, held for investment purposes. But times are changing, and some of the stocks held by TTM just seem so old-fashioned. So the chief investment officer at TTM is considering some reshuffling, specifically, selling its position in an old-fashioned traditional company, Hypernet Inc., to a manufacturer of AI-powered robots that will be used in health care settings to lift and move patients (necessitated by declining availability of health care workers). The robot is the CAREbot, and it is made by CAREbot Inc. TTM has 1,000 shares of Hypernet, and each is worth $5. It paid $1 for each share several years ago. TTM anticipates its stock price will increase by 10% per year. TTM would like to sell its Hypernet stock and buy CAREbot stock with the proceeds, because TTM sees even more upside for CAREbot.

How fast must CAREbot stock grow for TTM to be indifferent (after tax) between (1) holding Hypernet stock and doing nothing and (2) selling Hypernet stock and reinvesting in CAREbot? Whatever you do, assume that in 3 years you will liquidate your holdings to pay for your daughters college education. Assume the capital gains tax rate is 15% and that neither stock pays dividends.

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