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Question 1 A building site was bought by a development firm for $800,000.00 and was...

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Question 1 A building site was bought by a development firm for $800,000.00 and was sold 20 years later for $6,000,000.00. Land taxes on the building site were $10,000.00 during the first year and they were increased by $2,000.00 a year for the rest of the 20 years. (a) Sketch the Cash Flow diagram. (b) Write the equation for the Net Future Worth (NFW) in terms of the unknown Rate of Return, i*. (c) Calculate the Rate of Return (

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