In Exodus, God commanded Moses that every 45 years all land purchased during that time should...
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In Exodus, God commanded Moses that every 45 years all land purchased during that time should be returned to its original owners to create an equal distribution of wealth. Assume this heavenly policy is implemented today. You are considering purchasing a tract of land for $55,000. The land will provide cash in-flows of $4,000 every year for the next 45 years. Your required rate of return is 11%. Calculate the NPV of the project assuming you return the land to its original owner at the end of 45 years. (5 points) In Exodus, God commanded Moses that every 45 years all land purchased during that time should be returned to its original owners to create an equal distribution of wealth. Assume this heavenly policy is implemented today. You are considering purchasing a tract of land for $55,000. The land will provide cash in-flows of $4,000 every year for the next 45 years. Your required rate of return is 11%. Calculate the NPV of the project assuming you return the land to its original owner at the end of 45 years. (5 points)
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