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You are considering the purchase of an apartment building that is currently under construction. The building is expected to generate $350,000 annually for 5 years
You are considering the purchase of an apartment building that is currently under construction. The building is expected to generate $350,000 annually for 5 years at which time you estimate it has a value of $1.5 million. If your opportunity cost of capital is 12%, what is the maximum amount you should pay for this building (rounded to the nearest dollar)
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