Ten years ago, you purchased some land for $100,000. The current price of your land is $250,000. At that time 10 years ago, you could also invest your money in the stock market. Over the past 10 years, the stock market, on the average, returned 8% per year. Did you make a right investment decision by purchasing the land?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 8P
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Provide correct answer general Accounting

Ten years ago, you purchased some
land for $100,000. The current price of
your land is $250,000. At that time 10
years ago, you could also invest your
money in the stock market. Over the
past 10 years, the stock market, on the
average, returned 8% per year. Did you
make a right investment decision by
purchasing the land?
Transcribed Image Text:Ten years ago, you purchased some land for $100,000. The current price of your land is $250,000. At that time 10 years ago, you could also invest your money in the stock market. Over the past 10 years, the stock market, on the average, returned 8% per year. Did you make a right investment decision by purchasing the land?
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