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  3. end of year. purchase price 0 (1,000,000) 1 110,00

end of year. purchase price 0 (1,000,000) 1 110,000 2 115,000 3 120,000 4 125,000...

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Question

Accounting

end of year. purchase price

0 (1,000,000)

1 110,000

2 115,000

3 120,000

4 125,000

5 130,000

assuming a sales price of 1,500,000 at the end of the holding period, what is the net present value using a 13% expected rate of return?

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