Business, 01.02.2021 17:40 ani61

John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to $15,000 at the end of 10 years. He believes that he should earn an investment yield of 10 percent annually on his investment. The asking price for the lot is $7,000. Should he buy it?What is the internal rate of return of the investment if John purchases compunded annually of the property for $7,000 and is able to sell it 10 years later for $15,000?

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