What is the maximum price pay to own the project


Problem: Sonia is buying a project that will return $120,000/year for the first 5-years, and $130,000/year for the next 5-years. She invests only if she can earn at least a 15% annualized return on any project. What is the maximum price she should pay to own this project?

 

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Finance Basics: What is the maximum price pay to own the project
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