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Question
A property could be sold today to provide an after-tax cash flow from sale of $800,000. The current after-tax cash flow from operations is $20,000, which is expected to grow by 4% per year. If sold next year, the property is expected to provide an after-tax cash flow of $824,000. What is the marginal rate of return for holding the property for an additional year?
A) 5.6%
B) 2.6%
C) 3.1%
D) 9.3%
Answer
This answer is hidden. It contains 19 characters.
Related questions
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$
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