Latitia is considering investing in a parking lot. The tenant is the government which pays an annual
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Latitia is considering investing in a parking lot. The tenant is the government which pays an annual rent of $ 24,000 at the end of each year. In 15 years the lot will become the property of the government and have no value to Latitia. The property is listed at a price of $ 175,000 and is considered fairly risk free. Another investment option, a mutual fund that Latitia could invest in offers 10.5% annual dividend without any scope for stock price appreciation. Should she prefer buying the parking lot to the mutual fund?
Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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