Jorge has some land he believes will be worth $100,000 in 10 years. A buyer wants...
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Jorge has some land he believes will be worth $100,000 in 10 years. A buyer wants to offer him $50,000 for the land today. Jorge could invest the money in an account that offers an 8% rate of return. Based on that rate, what is the land worth today? Should Jorge take the offer? Jorge has some land he believes will be worth $100,000 in 10 years. A buyer wants to offer him $50,000 for the land today. Jorge could invest the money in an account that offers an 8% rate of return. Based on that rate, what is the land worth today? Should Jorge take the offer?
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To determine the present value of the land we need to discount the future value of 100000 back to th... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Posted Date:
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