A warehouse building was purchased 10 years ago for P300,000. Since then, the effective annual interest rate has been 8%, inflation has been steady at 2.5%, and the building has no deterioration or decrease in utility. What should the warehouse sell for today? (Take note that inflation in commodity increases its value)
A warehouse building was purchased 10 years ago for P300,000. Since then, the effective annual interest rate has been 8%, inflation has been steady at 2.5%, and the building has no deterioration or decrease in utility. What should the warehouse sell for today? (Take note that inflation in commodity increases its value)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A warehouse building was purchased 10 years ago for P300,000. Since then, the effective annual interest rate has been 8%, inflation has been steady at 2.5%, and the building has no deterioration or decrease in utility. What should the warehouse sell for today? (Take note that inflation in commodity increases its value)
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