Find the lowest sale price the investor should accept for the land ,if he wishes to earn a return of 10% after keeping the land for 10 years? Use FW method Purchase price $10,000 Annual maintenance 100 Expected sale price after 5 years $20,000

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
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Find the lowest sale price the investor should accept for the land ,if he wishes to earn a return of 10% after keeping the land for 10
years? Use FW method
Purchase price
$10,000
Annual maintenance
100
Expected sale price after 5 years
$20,000
Transcribed Image Text:Find the lowest sale price the investor should accept for the land ,if he wishes to earn a return of 10% after keeping the land for 10 years? Use FW method Purchase price $10,000 Annual maintenance 100 Expected sale price after 5 years $20,000
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