Question
You own a building that a local business wants to rent for the next 10 years. The business owner has offered to pay $50,000 today
You own a building that a local business wants to rent for the next 10 years. The business owner has offered to pay $50,000 today or pay $8,700 at the end of each of next 10 years. If your required rate of return is 12%, which payment schedule should you accept?
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Managerial Finance Essentials
Authors: Charles O. Kroncke, Alan E. Grunewald, Erwin Esser Nemmers
2nd Edition
0829901590, 978-0829901597
