Present value Years of stay Rent per year (3 years) Rent for year 4 & 5 Expenses in year 3 Sale Price after 5 years Interest rate of bank for loan taken to buy the propery 400,000 5 years 42000 45.000 3000 600,000 7.00% Question 1 Question 2 Is it a good deal what do you think of the 7%

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.13E
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Present value Years of stay Rent per year (3 years) Rent for year 4 & 5 Expenses in year 3 Sale Price after 5 years Interest rate of bank for loan taken to buy the propery 400,000 5 years 42000 45.000 3000 600,000 7.00% Question 1 Question 2 Is it a good deal what do you think of the 7%

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