Anticipated revenue and estimated rate of return

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Reference no: EM1362707

The XYZ has a choice between two warehouses. A lease at location A costs 1000 per month with a payment 2000 upfront to guarantee the 3 year lease. Location B would cost 1200 per month and would be leased from month to month. The anticipated revenue in either location is 1500 per month. the estimated rate of return is 10%. using net present value determine which location would be better

Reference no: EM1362707

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