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What do you think debbie should do

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Debbie owns some investment land that she purchased 10 years ago for $12,000. The land consists of two adjoining lots recently appraised at $80,000. She needs $40,000 cash for another investment opportunity and is considering two alternatives:

(1) sell half of the land for $40,000 or

(2) borrow the $40,000 by taking out a mortgage on the land.

Discuss the advantages and disadvantages of each alternative. What do you think Debbie should do?

Reference no: EM13517044

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