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Pavel [41]
2 years ago
12

You just purchased a parcel of land for $10,000. if you expect a 12% annual rate of return on your investment, how much will you

sell the land for in 10 years? note. due to rounding and method of calculation, your answer might vary slightly. choose the closest answer.
Business
1 answer:
Sunny_sXe [5.5K]2 years ago
4 0

I guess the closest answer is $31,060.

If you purchased a parcel of land for $10,000. If you expect a 12% annual rate of return on your investment. Therefore you can sell the land for in 10 years in $31,060.

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Answer:

a) $0.5145 million

b) $7.35 million

Explanation:

Given:

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a) Suppose they pay an interest of 7% per year on debt. Find the annual interest tax shield.

To find annual interes tax shield use the formula below:

Annual interest tax​ shield =Total par value of Debt × interest rate × tax rate

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Use the formula:

Present value of the interest tax​ shield = Annual interest tax​ shield /loan interest rate

= $514,500 / 7%

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present value of the interest tax​ shield = $7.35 million

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Pete's Putters sells each putter for $125. The variable cost is $60 per putter and fixed costs total $400,000. Based on this inf
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<h3>What is information?</h3>

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brainly.com/question/1299137

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