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Engineering Economics
4-7 Sally Seashell bought a lot at the Salty Sea for S50,000 cash. She does not plan to build on the lot, but instead will hold it as an investment for 25 years She wants a 10% after-tax rate of return after taking the 6% annual inflation rate into account. If income taxes amount to 15% of the capital gain, at what price must she sell the lot at the end of the 10 years?
The correct answer should be $264,412
I'm just not sure how. Thanks!
engineering   Civil-Engineering   
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Answer #1

Guen data as Tax o to 10% : taking6 6-1 TOM Nomina est at o.SS t0. yeaS FV1D Fv F50.0(5.143) 94850 ,, Gally Should Sell R lot fos $979650, tooteịue 10% obben etusn e end

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