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You are analyzing an existing property investment for your company, and have estimated that if it were held for one more year it would likely

You are analyzing an existing property investment for your company, and have estimated that if it were held for one more year it would likely generate a marginal rate of return of 11.75%. If your firms estimated reinvestment rate was 8.5% for other opportunities with similar risk profiles, the best decision would be to sell the property and reinvest proceeds.

a. True

b. False

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