You are buying a house which cost $150,000. This house will have an estimated life of 10 years with a net after-tax salvage value of $15,000. It's annual after-tax operating and maintenance costs are $50,000. To expect an 18% rate of return on investment, what would be the required minimum annual after-tax revenues.
You are buying a house which cost $150,000. This house will have an estimated life of 10 years with a net after-tax salvage value of $15,000. It's annual after-tax operating and maintenance costs are $50,000. To expect an 18% rate of return on investment, what would be the required minimum annual after-tax revenues.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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