Which payment schedule should you accept

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Reference no: EM131863589

You own a building that a local business wants to rent for the next 10 years. The business owner has offered to pay $40,000 today or pay $6,400 at the end of each of next 10 years. If your required rate of return is 10%, which payment schedule should you accept? How much would you pay to participate in a real estate project that pays nothing for the first 10 years and $2,500 for the following 10.

Reference no: EM131863589

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