What is its minimum price to break even

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Problem 1 - A piece of property is purchased for $25,000 and yields a $1500 yearly net profit. The property is sold after 10 years. What is its minimum price to break even with interest at 8%?

Problem 2 - Analyze Problem 1 again with the following changes:

(a) What if the property is purchased for $12,000?

(b) What if the yearly net profit is $925?

(c) What if it is sold after 7 years?

(d) What if (a), (b), and (c) happen simultaneously?

Reference no: EM133140199

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