Question: Question 2 Ron Nail has just received two offers for his seaside home The first offer is for R1 mllon today The second offer is

Question 2 Ron Nail has just received two offers for his

Question 2 Ron Nail has just received two offers for his seaside home The first offer is for R1 mllon today The second offer is for an owner-financed sale with a payment schedule as follows End of Year 0 (today) [10 marks] Payment R 200 000 R 200 000 R 200 000 R 200 000 R 200 000 R 300 000 2 4 Assuming no differential tax treatment between the two options and that Ron earns a rate of 8 percent on his initial investments, which offer should he take

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