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You can buy a piece of land for $1,000,000. You think you will be able to sell it to a developer in about five years
- You can buy a piece of land for $1,000,000. You think you will be able to sell it to a developer in about five years for twice that amount. Assume the cash flows in the interim years are $0. You think an investment with this much risk requires an expected return of in the range of 12% to 14% per year. What is the NPV?
- A.<$0
- B.=$0
- C.>$0
- D.Insufficient information
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
