Please answer the following two questions. Assume that the cost of capital (a discount rate for the

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Please answer the following two questions. Assume that the cost of capital (a discount rate for the NPV) is 7 percent for both questions.

a. If you buy a piece of land for $20,000 in Spearfish today, how much must you sell if for at minimum in one year to have a positive NPV?

b. If you plan on selling a piece of land in Spearfish in one year for $30,000, what max amount can you pay for it today to have a positive NPV?

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Public Finance and Public Policy

ISBN: 978-1429278454

4th edition

Authors: Jonathan Gruber

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Posted Date: Feb 27, 2023 05:32 AM

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Please answer the following two questions. Assume that the cost of capital (a discount rate for the

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a In this r 7 or 007 t 1 If NPV is 0 then Cash Flow will be Cash F... View the full answer

Public Finance and Public Policy

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