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Question
Which of the following represents the formula for the annual marginal rate of return (MRR) when trying to decide whether to hold or sell a property (ATCFS equals the after-tax cash flow from sale and ATCFO equals the after-tax cash flow from operations)?
A) MRR = (ATCFS (year t + 1) + ATCFO (year t + 1) − ATCFS (year t) − ATCFO (year t) / ATCFS (year t)
B) MRR = (ATCFS (year t + 1) − ATCFO (year t + 1) + ATCFS (year t)) / ATCFS (year t)
C) MRR = (ATCFS (year t + 1) + ATCFO (year t + 1) − ATCFS (year t)) / ATCFS (year t)
D) MRR = (ATCFS (year t + 1) + ATCFO (year t + 1) + ATCFS (year t)) / ATCFS (year t)
Answer
This answer is hidden. It contains 19 characters.
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