Suppose you bought a land that costs $500,000 today. You will need to continue to pay tax
Question:
Suppose you bought a land that costs $500,000 today. You will need to continue to pay tax on the land, and the rate is 3% of your purchase. Calculate the PV of your payment, using a 10% discount rate. Assume that there are no changes in the land's price and tax rate.
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Step by Step Answer:
To calculate the present value PV of your future tax payments on the land you can use the formula fo...View the full answer
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Related Book For 
Financial Markets And Institutions
ISBN: 9781292215006
9th Global Edition
Authors: Stanley Eakins Frederic Mishkin
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