6. You are considering remodeling your kitchen, where the estimated cost is $45,000. Your realtor friend has
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6. You are considering remodeling your kitchen, where the estimated cost is $45,000. Your realtor friend has told you that it will immediately increase the value of your house by about 90% of the remodeling cost. Experts say that on average, the value of houses in your area will appreciate by about 5% annually. If your opportunity cost is 3.5%, and you plan to sell the house in 6 years, is it a good investment to remodel the kitchen?
Related Book For
Introduction to Management Science A Modeling and Cases Studies Approach with Spreadsheets
ISBN: 978-0078024061
5th edition
Authors: Frederick S. Hillier, Mark S. Hillier
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