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Amjay Company is currently renting a parking lot for employee and visitor use at an anual cost of $9000, payable on the first of each year.

Amjay Company is currently renting a parking lot for employee and visitor use at an anual cost of $9000, payable on the first of each year. The company has an opportunity to buy the the lot for $50,000. Maintenance and taxes on the property are expected to cost 2500 annually. Given that the property will be needed for 10 more years, detrmine what sales price must be obtained at the end of that period in order for Amjay to break even, when the interest rate is 12 percent
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Modified Break even price.doc

Amjay Company is currently renting a parking lot for employee and visitor use at
an annual cost of $9000, payable on the first of each year. The company has an
opportunity to buy the lot for...

Sign up to view the full answer

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