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Business, 05.05.2020 07:00 nadarius2017

You are looking to invest raw land to eventually build a warehouse. The land costs $900k to purchase today and you will have to pay $25k per year in property taxes. At the beginning of the 9th year you plan to construct the building for $1M, which you will sell in the 10th year for $2.2 million Should you invest given you have a risk-adjusted discount rate of 9%?

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