Seven years ago, Lance Murdock purchased a wooden statue of a Conquistador for $7,600 to put in

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Seven years ago, Lance Murdock purchased a wooden statue of a Conquistador for $7,600 to put in his home office. Lance has recently married, and his home office is being converted into a sewing room. His new wife, who has far better taste than Lance, thinks the Conquistador is hideous and must go immediately. Lance decided to sell it on e-Bay and only received $5,200 for it, and so he took a loss on the investment. What was his rate of return, that is, the value of i?

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Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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