Which offer should daniel take

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Reference no: EM133910943

Problem

Harry just inherited some commercial land he wants to sell. Buyer 1 is offering $1,000,000, but wants Harry to keep the land for 7 years before they can pay him for the land. Buyer 2 is offering $460,000 to buy the land today. Get the instant assignment help. Based on a 12% discount rate, what is the present value of Buyer 1's offer? Which offer should Daniel take?

Reference no: EM133910943

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