Rutland Rocking Chair is looking to buy a new building to sell its rocking chairs. Rutland desires an average rate of return of 15% on this investment. If a building has an average annual income after taxes of $150,000 and a salvage value of $25,000, how much should Rutland invest in the initial cost of the building? 

$1,250,000 

$750,000 

$945,000 

$1,000,000

Answer rating: 100% (QA)

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