You are considering the purchase of a new home. It is in every way perfect...
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You are considering the purchase of a new home. It is in every way perfect for you and in excellent condition, except for the roof. The roof has only 5 years of life remaining. A new roof would last 20 years, but would cost $40,000. The house is expected to last forever. Assuming that costs will remain constant and that the interest rate is 5%, what value would you assign to the existing roof? Please round your numerical answer to the nearest integer dollar
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