Your company's finance manager has asked you to analyze the advisability of selling a piece of land owned by the company. He has decided that he will only proceed to authorize the sale if the land has had at least a 14% real appreciation. The land was purchased 20 years ago, in February 1997, at a value of $62 million. Today, January 2017, the land is commercially listed at a value of $137 million. The accumulated CPI for the last 20 years (February 1997 to January 2017) was 98.1%. Calculate the nominal and real variations, providing your suggestion to the finance manager.

Answer rating: 100% (QA)

Answer To analyze the advisability of selling the land we need to calculate the nominal and real var... View the full answer