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You have the opportunity to buy a farm in Lake Placid, New York for $2,000,000. Your advisor told you that could expect to sell the
You have the opportunity to buy a farm in Lake Placid, New York for $2,000,000. Your advisor told you that could expect to sell the building for $2,500,000 in six years. Calculate the net present value of this investment opportunity assuming that this project is a low-risk project. What change in the net present value can you expect if this project would be a high-risk project?
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