There are two investments you can make with $150,000: (1) Buy a small house and live in

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There are two investments you can make with $150,000: (1) Buy a small house and live in it for 15 years. House prices are expected to rise 3% per year over that period. (2) Invest in the stock market, focusing on capital gains. After 15 years, the expected value of your investment in the stock market is $350,000.

Required:
Ignoring taxes and the cost of renting an apartment, which is the better investment?
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Related Book For  book-img-for-question

Financial Management for Decision Makers

ISBN: 978-0138011604

2nd Canadian edition

Authors: Peter Atrill, Paul Hurley

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