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
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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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