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You own a building that a local business wants to rent for the next to years. The business owner has offered to either pay you
You own a building that a local business wants to rent for the next to years. The businessowner hasoffered toeitherpayyou (A)$50,000in a lump sumtoday or(B)$8,500at the end of eachof next 10years. If yourrequired rate of return is 12%, which paymentscheduleshould you accept. Please show the work
How much would you pay to participate in areal estate project that paysnothing for the first 10 years and $25,000for the following 10 years if you can earn 14% return on other investments of similar risk? Show the work.
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