A firm that owns and manages rental properties is considering buying a building that would cost $

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A firm that owns and manages rental properties is considering buying a building that would cost $ 800,000 this year, but would yield an annual revenue stream of $ 50,000 per year for the foreseeable future. For what range of interest rates would this purchase increase the present value of the firm?

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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