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Business, 13.08.2021 03:40 sunshine0613

Beth bought some residential development property for 200,000 five years ago. She sold the property this year for $1,200,000 and spent $250,000 for infrastructure development in year 5, the year in which the property was sold. If the inflation rate for the past 5 years has been steady at 5% annually, compute the after-tax real rate of return on this investment. Assume a capital gain tax of 15% Hint: Start out finding capital gains tax, then difference infrastructure and gains from what it was sold for, this gives you ATCF. Now use what you know about present worth, market interest rate, and inflation to solve for real interest rate

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Beth bought some residential development property for 200,000 five years ago. She sold the property...
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