About twenty thousand acres of swampland in the southern U.S. was purchased for $6,000,000. The purchaser intends
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About twenty thousand acres of swampland in the southern U.S. was purchased for $6,000,000. The purchaser intends to keep it for twenty years and then sell it for a profit. The purchaser speculates that he can get a 6% after-tax rate-of-return even though he estimates an average 2% annual inflation rate during that period. Suppose income taxes are 15% of capital gains. What price must he sell the entire acreage for at the end of twenty years to achieve his speculated rate of return? Show work.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date: